Knight had a buyout clause in his contract worth $1.5 million. He was scheduled to make just over $4 million next season.

Knight was one of the Bobcats' first free-agent signings and started in the team's inaugural season in 2004-05. The Bobcats drafted Raymond Felton with the fifth pick in the 2005 draft, and he eventually replaced Knight in the starting lineup.

The 31-year-old Knight averaged 9.1 points and 6.6 assists per game last season, but was limited to 45 games. Charlotte was Knight's seventh team since being Cleveland's first round pick in 1997.

"The professionalism that he brought to this team, both on and off the court, makes this a tough decision," said Bernie Bickerstaff, Charlotte's vice president of basketball operations. "His contributions to this young franchise will continue to have an impact on our younger players as we move forward."

The move means the Bobcats will likely need to sign another point guard before next season to back up Felton, who averaged 14 points and seven assists last season.