The former Blues flanker, 31, who played six tests over eight years, had hoped to pick up something at the last minute after being told by Sir John Kirwan that his services were no longer required, but it is understood that the best offer he received was a place in the Auckland franchise's wider training group.
That is a big fall in both status and income for someone who has played Super Rugby for nine years - seven at the Blues and two in Brisbane for the Reds. After playing 80 games for the Blues, his experience at a franchise with a new coach would have been extremely valuable.
Braid is well liked by his teammates and he is often considered a "fourth coach" but it's understood that his strong opinions did not go down well among the Blues' hierarchy at times.
It is understood that he is considering an offer from an English club.
Coaches from the five New Zealand franchises dialled into a teleconference to sign off their squads yesterday and they will be announced early this morning.
It is a sad way for Braid's New Zealand career to end, and it has probably been hastened by the many injuries he has suffered in what is a high-impact position.
This year he has battled a groin problem but returned to captain Auckland in the ITM Cup and brought up his 100th match in the team's final defeat to Canterbury.
While an offshore career beckons, he is unlikely to receive a lucrative offer from a top club due to the fact that he is a specialist openside flanker and also that he is nearing the end of his playing life.
Of all the coaches, Jamie Joseph at the Highlanders is set to be the man who will be perhaps most pleased with the additions to his squad.
He will welcome Blues All Blacks Tony Woodcock and Ma'a Nonu, as well as former All Black Brad Thorn. Another interesting signing is Otago's 1.66m Japanese halfback Fumiaki Tanaka.
One big loss for Joseph, however, is All Blacks loose forward Adam Thomson. It is understood that he hasn't re-signed with the New Zealand Rugby Union and won't play Super Rugby next year.
The Crusaders are the franchise likely to lose the most talent after the Blues; a worry for coach Todd Blackadder as he seeks a first title in charge.
Richie McCaw's sabbatical rules him out of the majority of the 2013 season, with fellow loose forward Brendon O'Connor making the move to Auckland. As a result, Blackadder will name Canterbury loose forward Jordan Taufua, who played most of the ITM Cup with Tasman, and Counties lock/flanker Jimmy Tupou.
Crusaders wing Sean Maitland has signed with Glasgow but Blackadder will be confident that he has a good replacement in Johnny McNicholl, an exciting player also wanted by Blues' coach Kirwan.
Kirwan has signed New Zealand Maori hooker Quentin MacDonald from the Crusaders in a good bit of business. MacDonald will back up Keven Mealamu, with Tom McCartney moving to loosehead prop to cover Woodcock's departure.
Kirwan, in need of a quality midfielder to cover the loss of Nonu, has picked up Jackson Willison, who was delisted from the Chiefs.
Chiefs' coach Dave Rennie will be hoping for Richard Kahui's services at the defending champions as he seeks to replace the sizeable hole that Sonny Bill Williams has left. All Blacks' midfielder/wing Kahui seriously injured his shoulder at the Chiefs and didn't appear for Waikato in the ITM Cup.
Charlie Ngatai's move to Hamilton from the Hurricanes will help as cover.
All Blacks prop and former Crusader Ben Franks will be Hurricanes' coach Mark Hammett's high-profile signing.
