Richard struggled with injuries for most of the season after being acquired in a trade last December with the San Diego Padres.
The 36-year-old veteran landed on the injured list twice this year for issues with his right knee and left lat.
He posted a 1-5 record and 5.96 earned-run average over 10 starts and 45.1 innings this season for Toronto.
The Blue Jays announced the move on Richard’s birthday.
Rule 5 pick Elvis Luciano was reinstated from the 60-day injured list in a corresponding move and will be active for Thursday’s game against the Boston Red Sox.
The 19-year-old reliever needed to be activated for the final 19 games of the season for the Blue Jays to retain his rights.