The two sides are working on parting ways on the remaining two years on Deng's contract.
The Los Angeles Lakers and veteran forward Luol Deng are reportedly finalizing a contract buyout as part of a waive-and-stretch provision, per Shams Charania of The Athletic.
Deng has two years and $36.8 million remaining on his contract. ESPN's Adrian Wojnarowski and Ramona Shelburne report that he will walk away from $7.5 million of the remaining $36.8 million.
The buyout will allow Deng to enter free agency.
The Lakers have been unable to find a trade partner for Deng without the inclusion of other prospects and/or draft picks. Stretching Deng will open up an additional $12.5 million in cap space.
Los Angeles was projecting to have $25 million in cap space for next season. The buyout of Deng puts leaves the team with $38 million, which is enough money for a max-contract player in 2019 free agency.
Deng has been with the Lakers since 2016 when he signed a four-year, $72 million deal with the team. The 33-year-old has averaged 15.0 points and 6.1 rebounds per game over the course of his career.
He only played in one game for Los Angeles last season.