The 32-year-old veteran spent the last two seasons with the Clippers.
The team's longest-tenured player will become a free agent Tuesday.
The minimum-salary contract for the combo guard would have become guaranteed had the team not cut him Monday.
The Pistons guard is due to become a free agent on July 1st.
Orlando will not have the right of first refusal on the three-year veteran when he becomes a free agent on July 1st.
Houston will decline its option on the Casselberry native, giving it the right of first refusal on any contract he signs over the summer.
Despite having plenty of salary-cap room, Orlando doesn't figure to play a big role in the NBA's annual free-agent spending spree, a report says.
Coming off his 10th season in Orlando, the veteran point guard's status with the Magic remains uncertain.
The Cavaliers swingman will become a free agent on July 1st.