The Indianapolis Star reported Thursday that Jones's agent, Leon Rose, worked out a deal to free the 36-year-old player from going to Indiana in exchange for additional room under the NBA's salary cap, with Jones' retirement a possibility.
"He really worked with us and did us a favor," Pacers President Larry Bird told the newspaper. "Now we can go out and look to get another player for the veteran minimum if we want because of what Eddie did."
Bird also said the Pacers may look to sign a third point guard to play behind T.J. Ford and Jarrett Jack since Travis Diener is sidelined with a foot ailment.
The Pacers can sign a player for the veteran minimum without going over the NBA's $71.2 million luxury tax.
Jones has played 16 seasons in the NBA, with stints with the Los Angeles Lakers, Charlotte, Miami and Memphis in addition to Dallas. He average 14.8 points a game over his 954-game career. He was also selected to three All-Star teams.