Los Angeles had reportedly asked for the salary-cap relief last month, attributing the request to what the organization claimed was a career-ending injury.
Deng will now remain on the team's books as a $5-million dead cap hit through the end of the 2021-22 season.
The two-time All-Star was already in serious decline when he signed a four-year, $72-million pact with the Lakers in 2016 and struggled to match the heights he set while playing for the Chicago Bulls.
After a lackluster 2016-17 season, he played in just one game in 2017-18 before reaching a buyout agreement with the Lakers on the remaining terms of his contract.
Deng last appeared in 22 games with the Minnesota Timberwolves in 2018-19 before calling it a career.