Napier, who was the star in Connecticut's run to the 2014 NCAA championship, was taken by Miami with the 24th overall pick in last year's NBA draft.
As a rookie with the Heat, Napier averaged 5.8 points, 2.5 assists and 2.2 rebounds in 19.8 minutes per game. He shot just 38.2 percent from the field and 36.4 percent on 3-point shots.
The move removes Napier's $1.3 million from Miami's books and probably means Tyler Johnson will be the Heat's backup point guard.
It appears Napier will be the No. 3 point guard at Orlando, behind Elfrid Payton and C.J. Watson.