Butler was waived by the Kings on Monday, Shams Charania of Yahoo! Sports reports.
Butler recently exercised a $1.55 million player option for the 2016-17 season, so the Kings should still have to pay his salary despite letting him go. It does offer the Kings another roster spot, which they could use to shore up some depth options elsewhere on the roster. The 36-year-old could find a deal with a contender looking for some veteran leadership off the bench.