The former No. 2 overall draft pick was let go after the Suns' president of basketball operations, Lon Babby, said Beasley failed to live up to the team's demands of "highest standards of personal and professional conduct."
"Today's action reflects our commitment to those standards," Babby said.
KTAR-AM, Phoenix, reported the Suns bought out the final two years of Beasley's contract, paying him $4.66 million for the upcoming season and $2.33 million for the 2014-15 season.
After spending two years with Miami and two with Minnesota, Beasley signed a three-year, $18 million deal with Phoenix in 2012, but posted career lows of 10.1 points and 3.8 rebounds per game in 75 contests, resulting in frequent benchings.
Off the court, the 24-year-old former Kansas State star is the subject of a Scottsdale, Ariz., police probe of an alleged January sexual assault at his home.
He also was cited last month for alleged marijuana possession and possession of drug paraphernalia following a traffic stop.