Hill, a one-time Duke University standout, averaged 16.7 points, 6.0 rebounds and 4.1 assists over a combined 1,026 games for Detroit, Orlando, Phoenix and the Clippers.
The 40-year-old contributed 3.2 points per game over 29 games with Los Angeles in 2012-13.
"The entire Clippers organization wants to congratulate Grant on an incredible career," Vice President of Basketball Operations Gary Sacks said. "For 19 years, Grant has always been the embodiment of class, a true professional and not only one of the best players -- but one of the finest individuals I have been around.
"We were fortunate to have Grant with us last season, and we wish him all the best in his next endeavor."
Hill, a three-time NBA all-star, won national championships with Duke in 1991 and 1992 and was part of the United States' gold medal-winning team at the 1996 Atlanta Olympics.