The Mavericks held Williams out of practices Wednesday and Thursday in the event a trade was made. According to multiple media reports, the Utah Jazz were interested in reacquiring Williams, whom they drafted in 2005 and traded to the Brooklyn Nets in 2011.
"It was great having Deron and his family back home in Dallas for the better part of 2 seasons," Mavericks coach Rick Carlisle tweeted early Thursday evening. "Giving Deron the freedom to choose his next team is the right thing to do. Deron still plays at a high level and I believe he will be a difference maker for a contending team."
Williams is expected to draw interest from the Cleveland Cavaliers, who have been seeking a veteran backup point guard since star LeBron James brought it up in January. He and James played together on the 2008 and 2012 United States Olympic teams.
Williams, 32, averaged 13.1 points and 6.9 assists this season but injuries limited the three-time All-Star to 40 games. He joined the Mavericks in 2015, suiting up for his hometown team after the Nets bought out the final two seasons of his contract for $27 million.
According to ESPN, Williams is expected to receive approximately $2.5 million from a buyout.
In 821 career regular-season games for the Jazz, Nets and Mavericks, Williams has averages of 16.6 points and 8.2 assists per game.