Carter-Williams was the Rookie of the Year for the Philadelphia 76ers in 2013-14. He had failed to live up to that early potential and was on his third team when he came to the Bulls from the Milwaukee Bucks before the start of the 2016-17 season.
Carter-Williams, 25, was in and out of the rotation for the Bulls, making just 19 starts. He struggled with knee pain, playing just 45 games. He averaged 6.6 points and 2.5 assists, well below his career averages of 13.0 and 5.4.
The Bulls still have to make a decision on whether to keep starting point guard Rajon Rondo -- scheduled to make $13.4 million -- by Friday's deadline.
Carter-Williams was traded to the Bucks in February 2015. The deal worked out better for the 76ers than the Bucks. The Sixers got the Lakers' first-round pick from Milwaukee and used that to trade up to acquire Markelle Fultz with the first overall pick in last week's draft.
ESPN's Nick Friedell contributed to this report.