The Lakers are set to use the amnesty clause on the contract of Metta World Peace barring some late change, according to Kevin Ding of the Orange County Register (on Twitter). The forward's contract calls for him to make about $7.73MM in 2013/14.
Even without Dwight Howard in the picture, the Lakers are well into luxury tax territory and cutting MWP loose with the amnesty provision will save them about $21.5MM in total. Peace, of course, has a reputation as a tenacious defender but his performance has been in decline as of late and he's certainly not worth the cost for a club that doesn't figure to contend in 2013/14.
Using the clause on MWP means that the Lakers will eliminate his cap hit from the books while still paying him his full salary. For a refresher on the amnesty clause, check out the full explanation in the Hoops Rumors glossary.