Lamb was acquired in July 2015 with two other lefties from the Royals for Reds ace Johnny Cueto.
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He started 10 games for the Reds in 2015, going 1-5 with a 5.80 ERA.
The 26-year-old struggled even more this season, going 1-7 with a 6.43 ERA in 14 games, all starts. He struck out 58 and walked 31 while allowing 14 homers.
Lamb was originally a fifth-round pick of the Royals in 2008.
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