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They also signed veteran wide receiver Golden Tate to their practice squad.
Peterson, 36, played in three games for Tennessee as the Titans scrambled to fill the void left by then-NFL rushing leader Derrick Henry, who suffered a foot injury that required surgery in a Week 8 win over the Indianapolis Colts.
In a backfield once dominated by Henry, Peterson struggled to produce as part of a committee in games against the Los Angeles Rams, New Orleans Saints and Houston Texans. He carried the ball 27 times for 82 yards (3 yards per carry) and a single touchdown while catching four passes for eight yards during his three-game stint. His best effort came against the Houston Texans on Sunday, where Peterson tallied 40 yards on nine carries (4.4 yards per carry).
The Titans signed running back and return specialist Dontrell Hilliard from the practice squad to the active 53-man roster earlier Tuesday, signaling Peterson's eventual release. Hilliard has made two game appearances for the Titans this season and was the team's top-producing running back in Sunday's loss to the Texans, tallying 82 yards on five carries and seven catches. He'll join a backfield that also features D'Onta Foreman and Jeremy McNichols, who missed Week 11 with a concussion.
The Titans maintain the AFC's best record and the inside track to the No. 1 seed despite Sunday's disappointing loss to the Texans. They face a critical matchup against the 7-4 New England Patriots in Week 12.
For Peterson, he's left to see if another running back-needy team shows interest after he sat the first eight weeks of the season as a free agent.