The grainy video, released by TMZ Sports, shows Rice and Janay Palmer in an elevator at an Atlantic City casino. Each hits the other before Rice knocks Palmer off her feet and into a railing. An earlier TMZ video had showed Rice dragging Palmer, now his wife, from the elevator at the Revel casino, which closed Sept. 2.
The Ravens said earlier Monday that they never saw the new video. Hours later, they sent out a one-sentence release:
"The Baltimore Ravens terminated the contract of RB Ray Rice this afternoon."
The NFL also took action, saying on Twitter that commissioner "Roger Goodell has announced that based on new video evidence that became available today he has indefinitely suspended Ray Rice."
The NFL Players Association told ESPN in an email that it had no comment on the termination of Rice's contract or his indefinite suspension by the NFL.
Ravens coach John Harbaugh was expected to talk Monday night after practice. Rice had three years remaining on his contract at $4 million this season, $3 million next season and $3 million in 2016. The Ravens will not owe Rice any money.
Rice's salary-cap number lowers from $8.75 million this season to $4.75 million. Next season, Rice would still be on the Ravens' cap for $9.5 million of dead money.
The NFL suspended Rice for two games in July for domestic violence, a punishment that at the time received widespread criticism in different circles.