Designated for assignment
A Major League Baseball player that has been designated for assignment is removed from the club's 40-man roster. Once he has been designated for assignment, his club has 10 days to either trade the player or demote him to the minor leagues. If neither event takes place within 10 days, the player is released and becomes a free agent.
A club may designate a player for assignment so that he is not occupying a slot on the roster while the club is deciding what to do with him. This can also give the player time to decide whether to accept the demotion to the minor leagues, a choice to which he may be entitled either by a clause in his individual contract or by virtue of the collective bargaining agreement based on his years of major league service.