The 37-year-old scored 127 runs in six matches at an average of 21.16 with a strike rate of 144.31.
Injured Black Cap Corey Anderson was also released, although he was only a late call-up for last year's tournament to replace injured Australian Nathan Coulter-Nile.
Colin de Grandhomme and Tim Southee were both retained by the side. They were among a host of Kiwis retained by teams in the competition.
Mitchell McClenaghan and Adam Milne will remain with the Mumbai Indians, Colin Munro and Trent Boult were retained by the Delhi Daredevils, Sunrisers Hyderabad chose to keep Kane Williamson in their set-up, Chennai Super Kings retained Mitchell Santner, and the Rajasthan Royals have retained Ish Sodhi.