Tinsley, who spent his first eight years with the Pacers, will become a free agent once he clears waivers in a week.
"This ends a very difficult period for all parties involved," president Larry Bird said in a statement. "We are pleased to have this resolved."
The decision to release Tinsley is surprising since Bird said several times earlier that he had no intention buying out the remaining part of Tinsley's contract.
Tinsley, who last played in a game in January 2008, was scheduled to make $14.7 million in the final two years of his contract. Financial terms of how much of that he'll receive were not announced.
Do you think it's a good backup for R2??? He will come for the LLE?? obviously not for the minimun...right???