Vargas was outrighted to Triple-A Reno on Thursday.
Vargas spent time with the Diamondbacks, Cubs and Pirates during the 2021 campaign and hit .156 with four extra-base hits, seven runs, seven RBI and a stolen base in 34 appearances. The 30-year-old will lose his spot on the 40-man roster, and whether he remains in the organization next year remains to be seen.