The move cleared a 25-man roster spot for top prospect Pedro Alvarez, who was recalled from Triple-A Indianapolis to start at third base.
Iwamura, who is making $4.8 million, has been one of the majors' worst offensive players, batting .182 with two homers and nine RBIs while striking out 31 times in 165 at-bats. Coming off major knee surgery last season with Tampa Bay, Iwamura showed minimal range defensively at second base.
General manager Neal Huntington said that if Iwamura isn't traded, he will be optioned to Indianapolis to try to regain his batting stroke and improve in the field.
Pittsburgh Pirates bench 2B Aki Iwamura, play Neil WalkerNo bids for Atletico pair