The Packers also waived QB Jake Dolegala and signed CB Rojesterman Farris.
Funchess, 27, is a former second-round pick by the Panthers in the 2015 NFL Draft out of Michigan. He finished his four-year rookie contract with Carolina before agreeing to a one-year deal worth up to $13 million with the Colts in 2019.
Funchess was once again testing the open market as an unrestricted free agent this offseason when he signed a one-year contract worth $2.5 million with the Packers. However, he opted out of the 2020 season due to COVID-19 concerns.
He agreed to a roughly $750,000 pay cut to stay in Green Bay this season back in March.
In 2019, Funchess appeared in one game and caught three passes for 32 yards receiving before being placed on injured reserve with a broken collarbone.