The future Hall of Fame safety will receive the remainder of his salary -- $5 million -- from the Texans. Reed returned to his home in Atlanta, where he will decide his next step.
Jets head coach Rex Ryan would like to bring him in -- Reed starred for Ryan when he coached him in Baltimore -- and sources said the Pats also have interest. Bill Belichick and Tom Brady have long been big fans of Reed's and Belichick has a history of bringing in savvy vets late in their career, and late in the season.
Reed is healthy, sources said, and could pass a physical. His hip has not been a real issue this season after offseason surgery, but he was not a good fit in Wade Phillips' defense in Houston. However, he would make sense for these AFC East rivals.
Texans receiver Andre Johnson helped recruit Reed to Houston. Brady might call Reed soon as well, hoping to lure him to New England for a shot at another ring after Reed's Ravens beat the Pats in the playoffs last year en route to the Super Bowl.
Ryan has brought in former players of his from Baltimore in the past -- Trevor Pryce, for one. His secondary could use some help, with the strength of New York's stout defense up front with its line.