Once Walker clears waivers, he'll join free agency.
Walker, 32, is on an expiring $9.2 million salary for this coming season.
In February, the Knicks and Walker agreed that the four-time All-Star would be sidelined for the remainder of the season to allow him to work out in preparation for 2022-23. Knicks coach Tom Thibodeau dropped Walker from the Knicks' playing rotation in mid-November, and Walker also battled knee soreness in January.
Walker averaged 11.6 points and 3.0 rebounds in 37 games last season.