The buyout will allow the 39-year-old veteran to join a team that is contending for the playoffs.
"Andre was a consummate professional and set a good example for our younger players on what it takes to be a pro in this league," Timberwolves general manager Milt Newton said in a statement. "We wish him the best."
The Timberwolves signed Miller in the offseason to help mentor the team's young guards. Miller played in just 26 games this season and hasn't played since the All-Star break. The Wolves have given rookie Tyus Jones playing time at point guard behind Ricky Rubio.
The buyout gives the Wolves an open roster spot to sign another player if they choose.
Information from The Associated Press was used in this report.