The team agreed to pay Wallace $10 million for a contract that would have paid him $14 million in 2009-10, according to the report. Wallace, the NBA's defensive player of the year in 2006, was hampered by injuries last season and has said he is considering retirement.
Wallace averaged 6.5 rebounds and 2.9 points per game in 56 games for the Cavaliers this season, well below his career averages of 10.3 rebounds and and 6.2 points per game.
According to the report, the buyout could save the Suns $8 million, because the team's payroll is projected to exceed the league $69.9 million luxury tax limit -- above which teams must pay a dollar-for-dollar penalty for salaries in excess of that figure. It also frees up funds for the Suns to sign forward Grant Hill and Channing Frye.