The Wizards have the option of buying out Rashard Lewis for $13.7 million, which would represent an approximate reduction of payroll of $10 million.
Lewis is scheduled to be the second highest paid player in the NBA.
Washington has until June 30th to complete the buyout.
The Wizards can also create more cap space by using their amnesty clause on Andray Blatche.
But multiple sources contend the Wizards will look to trade both Lewis and Blatche rather than pay them not to play for the club.