The Milwaukee Bucks have petitioned the NBA for an exclusion to clear the remaining $10.5 million on Mirza Teletovic's contract off the team's salary cap, league sources told ESPN.
The Bucks are expected to meet the criteria and receive the cap relief based on Teletovic's career-ending injury.
The one-year anniversary of Teletovic's final game with the Bucks was on Wednesday, clearing the way for the Bucks to apply for $3.5 million in annual cap relief in 2018-19, 2019-20 and 2020-21.
Teletovic was forced to retire because of a life-threatening pulmonary condition. The Bucks used the waive and stretch provision to spread the $10.5 million cap hit across the three seasons.
The Bucks would drop to $8.7 million under the luxury tax threshold for 2018-19, and Milwaukee's summer will likely include the franchise trying to re-sign Khris Middleton, who will be one of the league's most coveted free agents.
The league's approval process includes an independent medical examination, which would have to conclude Teletovic cannot medically return to basketball.
Teletovic retired in September and accepted a position as the head of the Bosnian basketball federation.
ESPN front-office insider Bobby Marks contributed to this report.