The move clears more playing time for rookie John Collins.
Ilyasova, who started in 40 of the 46 games he played for the Hawks this season, will become a free agent if he clears waivers as expected. Ilyasova's contract, which was bought out by the team, was set to expire at the end of the season.
The Hawks, who were half a game behind Phoenix in the race for the NBA's worst record before Monday night's game against the Lakers, released veteran guard Marco Belinelli in a similar move on Feb. 9 to clear playing time for rookie Tyler Dorsey.
Belinelli signed with the 76ers, who reportedly also have interest in Ilyasova.
Ilyasova, 30, averaged 10.9 points and 5.5 rebounds per game this season.