The Knicks were notified last week that their request for Cuttino Mobley's $9.5 million salary to be erased from their 2009-10 tax bill has been approved, according to sources.

The Knicks then waived Mobley on Monday, according to a league memorandum obtained by ESPN.com.

Once Mobley clears waivers later this week, New York will see its luxury-tax bill for July drop from nearly $15 million to $5.1 million. That will also reduce the rebate that teams get for staying underneath the league's $69.9 million luxury-tax threshold from just over $4 million to $3.7 million.