Hernandez was earlier pictured being led away by police at his home in North Attleborough, Massachusetts.
The body of Odin Lloyd, 27, was found about a mile away from his house on June 17 and his death was ruled a homicide - Hernandez has not been named as a suspect in the case.
Authorities have searched his home, on the Rhode Island line not far from the Patriots' stadium, several times over the past week.
But the Patriots reacted quickly to the news of the player they drafted in 2010.
A statement on the franchise's official website read: "A young man was murdered last week and we extend our sympathies to the family and friends who mourn his loss.
"Words cannot express the disappointment we feel knowing that one of our players was arrested as a result of this investigation.
"We realize that law enforcement investigations into this matter are ongoing. We support their efforts and respect the process. At this time, we believe this transaction is simply the right thing to do."