NEW YORK (Reuters) - Brandon Jacobs, the bruising running back who helped the New York Giants win two Super Bowls, has been cut after failing to come to terms on a new contract, the team said on Friday.

Jacobs, 29, holds the franchise record with 56 rushing touchdowns and ranks fourth on their all-time list with 4,849 yards gained on the ground. He also caught 80 passes for 730 yards and four touchdowns in his seven seasons.

"Brandon has truly been a great Giant," New York general manager Jerry Reese said in a statement. "These times are always very hard for me."

The Giants were hoping to get Jacobs to agree to a reduction of his contract, which called for a salary of nearly $5 million for next season.

Quarterback Eli Manning, the Most Valuable Player in the Giants' 21-17 Super Bowl win over the New England Patriots last month, agreed to restructure his contract on Thursday to free up almost $7 million toward the team's salary cap.

Jacobs joined the Giants as a fourth-round draft choice in 2005 and played in 100 regular season games. In 11 playoff games, he rushed for 464 yards, scored four touchdowns and caught eight passes.

"They're all great accomplishments," said Jacobs. "I might be leaving, but my name will stay.

"But it's time to move on. We tried, (but) couldn't reach an agreement."

In 2011, Jacobs was second on the Giants (behind Ahmad Bradshaw) with 571 rushing yards on 152 carries, a 3.8-yard average. He ran for seven touchdowns.

In the Super Bowl win over New England, Jacobs rushed for 37 yards on nine carries.

"Brandon helped us win two world championships. No matter what we asked him to do, he performed and played in whatever role we asked him to perform," said head coach Tom Coughlin. "He really was a team player."

(Reporting by Larry Fine in New York; Editing by Frank Pingue)