Thomas was scheduled to enter the final year, which was not guaranteed, of a four-year, $27.5 million deal he signed in July 2016. Per Spotrac, $1 million of his $7.6 million salary for 2019-20 would become guaranteed Sunday.
He will now become an unrestricted free agent.
Thomas signed the contract as he was on an upward trajectory, coming off a 2015-16 campaign that saw him average a career-high 8.2 points per game. However, the 6'8", 240-pound forward has seen his numbers take a dip ever since the ink dried.
He managed just 4.5 points per game while shooting 39.6 percent from the floor. In the three seasons since he signed the $27.5 million contract, he has shot just 39.1 percent on field-goal attempts.
Meanwhile, he has averaged just 55 games since 2016. For the second time in three seasons, he was limited to just 46 games in 2018-19, missing a 20-game stretch as he underwent arthroscopic surgery on his left knee in early November to remove loose bodies.
Ian Begley of SNY.tv reported earlier this week that the Knicks would have interest in bringing the 31-year-old Thomas—who has been with New York since January 2015—back as a free agent because of his veteran leadership and professionalism.
Thomas, though, did not offer any insight as to what he planned to do should he hit the open market.
"We'll see what happens," Thomas told Begley. "Free agency is always unpredictable. You think you know until it happens, so let the cards fall where they want to and we'll see what happens."