The Vertical's Shams Charania first reported the news.
Had Diaw been on Utah's roster past Saturday, his $7 million salary for the 2017-18 season would have become fully guaranteed.
Diaw posted a farewell message to the organization and its fans on Instagram once the news broke:
In his lone season with the Jazz, Diaw averaged 4.6 points, 2.3 assists and 2.2 rebounds on 44.6 percent shooting from the field and 24.7 percent shooting from three.
Diaw, 35, also posted a net rating of plus-2.4 points per 100 possessions in 73 appearances.
The Frenchman is well past his prime, but it's been clear over the past two seasons he has plenty left to offer as a bench contributor who can excel in the high post and play between 13 and 18 minutes a game.