Poythress, 24, signed with the Pacers last December and appeared sparingly in 25 games for the club, logging just 104 total minutes. In 53 G League games for the Fort Wayne Mad Ants over the last two seasons, Poythress has averaged 18.7 PPG and 7.3 RPG with a .521 FG%.
Waiving Poythress was part of a series of roster moves completed by the Pacers that cleared the way for the team to sign Tyreke Evans and Doug McDermott. The club also renounced its rights to several free agents, including Trevor Booker and Joe Young.
Poythress will become an unrestricted free agent on Sunday if he clears waivers.