The Hawks acquired Dunleavy as part of a package that included a protected future first-round pick from Cleveland for guard Kyle Korver on Jan. 7. Dunleavy was to earn $5.2 million in the 2017-18 season. The move frees money that can be used in the team's effort to re-sign power forward Paul Millsap.
The 36-year-old Dunleavy averaged 5.6 points in 30 games, all as a reserve, with Atlanta.
Dunleavy, a first-round pick by Golden State in 2002, has a career average of 11.2 points per game. He scored a career-high 19.1 points per game with Indiana in the 2007-08 season.