Bobcats president of basketball operations Rod Higgins said in a statement that "with the recent acquisition of additional backcourt depth to our roster, we believe this is in the best interests of both parties."
Gordon won't be eligible to play for another team in the postseason since he wasn't waived by the March 1 deadline.
Charlotte got Gordon from the Detroit Pistons with a future first-round draft pick in June of 2012 for Corey Maggette. The Bobcats will get Detroit's pick this year if it is outside the top eight.
Gordon is making $13.2 million this season.
Gordon never saw significant playing time in Charlotte. He played in only 19 games this season, averaging 5.2 points, 1.4 rebounds and 1.1 assists in 14.7 minutes.