The Milwaukee Bucks acquired veteran small forward Caron Butler from the Phoenix Suns for point guard Ish Smith and center Viacheslav Kravtsov.
Butler started for the Los Angeles Clippers in each of the past two seasons before getting dealt to Phoenix in July.
He is entering the final year of his contract, which pays him $8 million this season.
"We would like to thank Caron for his professionalism and wish him the best with the Milwaukee Bucks," said Suns general manager Ryan McDonough. "This deal gives us significant cap space as well as the flexibility to trade for another exciting player, which is how we were able to acquire Eric Bledsoe. It also provides us with two young players in our efforts to build a team capable of sustainable success."
Since the Bucks were able to take on Butler's salary under their cap, the Suns will gain nearly $6 million in cap space. Smith and Kravtsov are owed a combined $2.5 million.
Kravstov, a 26-year-old Ukranian, played sparingly for the Detroit Pistons last season. Smith, a 25-year-old point guard, is on his sixth team in four seasons. He played collegiately at Wake Forest.
Butler, 33, is from Racine, about 20 miles from Milwaukee. He has had a strong desire to play close to home. He started 78 games last season for the Los Angeles Clippers, averaging a little more than 10 points per game.
Butler was acquired by the Suns on July 10 as part of a three-team deal involving guards Eric Bledsoe and J.J. Redick.
Phoenix also announced the signing of center Alex Len, the No. 5 overall pick in the 2013 NBA Draft. Terms were not disclosed.