Coach Flip Saunders announced the decision Monday. Barea had one year and $4.5 million remaining on his contract. But Saunders didn't believe there would be as much playing time for him this season with Ricky Rubio and Mo Williams entrenched as the team's top two point guards.
Barea signed a four-year contract worth more than $17 million in 2011 to leave Dallas.
Barea struggled for much of his time in Minnesota, where he was miscast as a prototypical point guard. Barea was at his best as a mini-shooting guard in Dallas and he could return to the Mavericks.