All told, Nady hit .135 in 37 at-bats after making the team out of Spring Training as a non-roster invitee.
"It's always tough, especially when you have guy with the character that X has, the intangibles and skill set," manager Bud Black said.
The Padres have 10 days to place Nady on waivers, trade him or release him. Black, for one, hopes that Nady decides to stay with the organization and ends up with Triple-A El Paso.
"My recommendation is, 'we want to keep you and that you should keep playing,'" Black said.
This was the second tour of duty with the Padres for Nady, 35. He was selected by the club in the second round of the 2000 First-Year Player Draft and, after agreeing to a big league deal that September, made his Major League debut on Sept. 30.
Nady had a hit in his first and only at-bat on Sept. 30, a single off Dodgers pitcher Onan Masaoka. Nady is a career .268/.323/.432 hitter in parts of 12 seasons with eight different teams.