Pelluer's agent, Joe Courrege, said at a news conference that negotiations with the Cowboys failed to produce an acceptable deal. Pelluer refused a one-year offer that matched his salary last year, $302,000. He also refused a five-year offer.
"The five-year offer contained language that was unacceptable," Courrege said. "It was based on playing time. If he didn't get it, they would take money away."
The announcement came a day before a voluntary full squad mini-camp that Pelluer had been warned to attend by new Cowboy Coach Jimmy Johnson or end up behind three other quarterbacks.
The 6-foot-4, 208-pound Pelluer shared starting duties with Kevin Sweeny last season, when the Cowboys finished 3-13. Pelluer also shared duties with Danny White. Sweeny has since signed a free agent contract with the San Francisco 49ers.