Shealy, who remained with the Royals for Friday night's exhibition game against the Texas Rangers, hit .262 with four homers and nine RBI in 23 spring training games before he was outrighted.
The Royals also announced that right-hander Joel Peralta had cleared waivers after being designated for assignment earlier this week, becoming a free agent. He was 1-0 with a 6.23 ERA in nine spring appearances.
Royals manager Trey Hillman said Friday that the team might not announce its final 25-man roster until Sunday's deadline.
"Most of it will go to Sunday, but we might be able to do something [on Saturday]," Hillman said.