"Right now his options are open," a sources close to Savage said.
It is not known where Savage will transfer to, or whether he will be enrolled anywhere in the spring semester.
It means the only experienced quarterback on the Scarlet Knights roster is freshman Chas Dodd, who overtook Savage during the season.
Savage made the decision a little more than a week after Rutgers hired offensive coordinator Frank Cignetti, who runs a pro-style offense and suits Savage's style well.
Savage became Rutgers' starting quarterback as a freshman, and looked to be the quarterback of the future for the program.
He began the 2010 season as the starting quarterback before being injured Oct. 2 against Tulane. He was not healthy to play in the next two games, but even when he was ready to play, he could not regain the starting job ahead of Dodd.
Savage finished the season 43 of 83 for 521 yards, two touchdowns and three interceptions. With Savage leaving, the Scarlet Knights are down to a pair of scholarship quarterbacks in Dodd and Steve Shimko, who missed the season with a shoulder injury and whose availability entering the spring is uncertain.
Rutgers also announced freshman running back Casey Turner was transferring to Florida A&M, which was reported Friday at the ScarletReport.com premium message board.
Both players were granted conditional releases, which means Rutgers must clear the school they are transferring to.
"We wish Tom and Casey the best in their future endeavors," Rutgers coach Greg Schiano said.