The Yankees designated Carter for assignment for the second time in a two-week span on July 4. He was first designated for assignment on June 23, but returned to the Yankees' roster a week later after Tyler Austin strained his hamstring.
Ji-Man Choi has served as New York's primary first baseman since Carter was dropped.
Carter, 30, batted just .201 while striking out 76 times in 184 at-bats (208 plate appearances) with the Yankees. The veteran slugger belted 41 home runs for Milwaukee in 2016 -- tied for the most in the National League -- but homered just eight times this season.
The strikeout-prone Carter failed to generate much interest as a free agent this past offseason despite his homer outburst with the Brewers in 2016. He reportedly was considering offers to play in Japan before signing a one-year, $3.5 million deal with the Yankees.
The Yankees are responsible for paying the rest of Carter's salary; another team can sign him for a prorated share of the $535,000 major league minimum.He would have earned his first $100,000 performance bonus at 250 plate appearances.
The Associated Press contributed to this report.