The Bears originally acquired Foles two seasons ago in a trade with the Jacksonville Jaguars for a fourth-round draft pick.
After starting seven games in 2020, the Super Bowl LII MVP logged only one start last season, leading the Bears to a 25-24 road victory over the Seattle Seahawks in which he threw for 250 yards and a touchdown pass.
The Bears will save $3 million against their salary cap with the move, which comes with a $7.66 million dead cap charge, according to Spotrac.com. The Bears will be up to $57 million in dead cap money once linebacker Danny Trevathan's release becomes official after June 1.
Chicago general manager Ryan Poles confirmed in March that the team had been trying to trade Foles after adding veteran backup Trevor Siemian in free agency.
A veteran of 10 seasons, the 33-year-old Foles has thrown for 14,003 yards with 82 touchdowns and 43 interceptions.
He earned a Pro Bowl selection with the Philadelphia Eagles in 2013 but had his most notable season in 2017 when he was called upon to replace an injured Carson Wentz in Week 15 and then later that season led the franchise to its first Super Bowl championship, completing 72.6% of his passes that postseason for 971 yards with six touchdowns and just one interception in three games.
ESPN's Courtney Cronin contributed to this story.