According to Boston.com:
According to an NFL source, the Patriots have informed wide receiver Kelley Washington that they don’t plan to pick up the $4 million option bonus he was due as part of the five-year deal he signed last offseason. However, the team has expressed interest in bringing him back with a reworked deal. Washington didn’t catch a pass last season, but he was one of the Patriots’ top special teams players and recorded their first blocked punt since 1999 in a 20-10 win over the Jets Dec. 16. He received a $300,000 signing bonus last year, a $106,720 workout bonus, and made $600,000 in base salary. Under the terms of the five-year contract he signed last offseason, Washington is slated to make $900,000 in base salary in 2008 if the Patriots pick up the $4 million option bonus, triggering the remainder of the contract, which could have a total value of $22 million, factoring in escalators and $7 million in not-likely-to-be-earned incentives, over five years. If the Patriots don’t pay out the option bonus and the sides don’t reach an accord on another deal, Washington would become a free agent.
This was a pretty expected decision. Washington’s $4 million bonus was far too much for a special teams player. Hopefully the Patriots can rework a deal so he can stick with the team.