The team will travel to Indiana without Harrellson and guard Terrel Harris, whom the team waived over the weekend. The Heat's roster stands at 13, with two open spots.
Harrellson played in five games with the Heat and averaged 2.0 points and 1.4 rebounds per game in 28 total minutes of action.
This is the second time that Harrellson has been waived by an NBA team since last season. In July, the Houston Rockets released Harrellson after acquiring him from the New York Knicks in a package that sent Marcus Camby to New York.
Because the Knicks traded Harrellson in the offseason, he is not eligible to be re-signed by the Knicks for the rest of the season. However, the Heat can re-sign Harrellson to a 10-day contract if they choose.
The move clears a roster spot that could go toward rebounding help. The Heat lead the Eastern Conference with a 23-9 record but rank in the bottom 10 in rebound rate and 29th in offensive rebound rate.
The Heat will begin a six-game road trip beginning with the Pacers on Tuesday night.