The person spoke on the condition of anonymity Thursday because the Canadiens have not announced the move.
The abrupt move comes four months after Montreal signed the 39-year-old Streit to a one-year, $700,000 contract after he won a Stanley Cup with the Pittsburgh Penguins.
They made the move to restock a depleted group of defensemen. Andrei Markov left to play in his native Russia, Alexei Emelin was claimed in the NHL expansion draft, and Nathan Beaulieu was traded to the Buffalo Sabres.
Streit had zero points this season, playing in just two of Montreal’s first four games.
This is Streit’s second stint with Montreal after spending his first three NHL seasons with the Canadiens. He has topped 40 points in six of 11 seasons and overall has 96 goals and 338 assists in 786 games.