Camby, acquired as part of the trade that sent Andrea Bargnani to the New York Knicks, was owed $7.5 million over the final two years of his contract.
The 39-year-old center appeared in just 24 games last season for the Knicks, averaging 1.8 points per game. Camby was picked second overall by Toronto in the 1996 draft and has played 973 games during his career.
He expressed a desire to play for a contending team.
The Raptors announced Tuesday they were using their amnesty provision on forward Linas Kleiza.
Copyright 2013 by The Associated Press
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