Sources told ESPN.com that the Sixers, after their loss Sunday night at Indiana, consented to waive McGee before the midnight deadline that makes McGee eligible to appear in the playoffs this season with another team.
ESPN.com first reported Sunday that the Sixers and McGee's representatives had launched serious buyout talks.
Yet USA Today reported early Monday that McGee was able to secure his release from the Sixers without surrendering any of next season's $12 million salary or what's left of this season's $11.25 million.
Once he clears waivers this week, McGee will become a free agent. He initially said upon being dealt to the Sixers that he did not want a buyout, but ESPN.com reported Sunday that McGee's representatives were on the hunt to find a team interested in signing the 7-footer.
The Sixers took on the substantial remaining money on McGee's contract from the Denver Nuggets on trade-deadline day in a deal that also netted them a future first-round pick. McGee has played sparingly since joining Philadelphia and realistically had no future there, given the presence of young center Nerlens Noel and two highly rated frontcourt lottery picks, Joel Embiid and Dario Saric, who have yet to play for Philadelphia.
"I don't want to get bought out," McGee told local reporters shortly after the trade. "That's not a positive thing. When you think about it, you don't get all of your money when you get bought out.
"So it doesn't make sense why someone would want to get bought out unless they are older -- older and they want to go to a contender or something. I'm not that old. I just want to play basketball."
The pick Philadelphia acquired from Denver is one of the two first-rounders Cleveland sent to the Nuggets in January for center Timofey Mozgov. This particular pick was acquired by Cleveland from Oklahoma City and is 1-to-18 protected this season and 1-to-15 in the following two drafts.
The Nuggets also created an $11.25 million trade exception in the transaction by taking back no salary from the Sixers, who went over the league's minimum salary floor by absorbing McGee's contract and then subsequently claiming Thomas Robinson off waivers.