The Pacers declined the $3.5 million team option for forward/center Lavoy Allen, making him an unrestricted free agent, according to a tweet from Allen's agency, ASM Sports.
Allen averaged 4.4 points and 4.6 rebounds in 217 games, starting 28 games in 2015-16.
The move was not a surprise with the Pacers adding power forward T.J. Leaf and center Ike Anigbogu in Thursday's draft.