cut•out (ˈkʌtˌaʊt) n. 1. something cut out from something else, as a pattern cut out or intended to be cut out of paper. 2. a valve in the exhaust pipe of an internal-combustion engine, which when open permits the engine to exhaust directly into the air. 3. an act or instance of cutting out. 4. Slang. an intermediary, as in espionage. 5. a device for the manual or automatic interruption of electric current. 6. a usu. discontinued record album that is for sale at a discount.