Cleveland is also acquiring Los Angeles Clippers forward Sam Dekker. Dekker is being acquired with the Cavs' $5.8 million trade exception created in the Kyrie Irving trade with Boston last summer.
The deal also includes the exchange of draft rights to European players on both sides and won't be completed for a couple of days, a source said.
Dekker, 24, will earn $2.76 million this season and will be a restricted free agent next summer. He played in 73 games for the Clippers last season, averaging 4.2 points in about 12 minutes per game. He spent the previous two seasons with Houston.
White, 25, would've made $772,000 from the Cavs, whether he was on the final roster or not when the season starts. The team had until 5 p.m. Monday to waive him before he was guaranteed any money.
A source said the Cavs asked White if he'd consider extending the deadline to guarantee his salary to the start of the regular season, and he declined.
White is a 6-foot-8 wing who's averaged 2.9 points and 2.3 rebounds over parts of two NBA seasons. The Cavs now have 11 players under contract with four open spots. One will go to Dekker, and one will go to free agent guard David Nwaba, who has agreed to join the team and is still working out contract details. Another will likely go to restricted free agent Rodney Hood.
White signed a 10-day contract and then a two-year deal at the end of the regular season, but didn't play at all for the Cavs because of a broken left foot suffered in November while playing for the Miami Heat.
Cleveland's trainers and development staff helped White rehab his injury and get back into playing shape. He played in the NBA's Las Vegas Summer League for the Cavs and averaged 6.0 points and 7.4 rebounds.
White told cleveland.com during Summer League that he was still trying to recover mentally from his injury. "I just gotta get through," White said. "I'm old enough, I'm not young anymore, so I gotta get over it (mentally) and try to find a way to showcase my ability."
Dekker starred for the Wisconsin Badgers in college. After finishing college on a championship game run in the 2015 NCAA Tournament — which included a stunning win over previously unbeaten Kentucky — Dekker was selected by the Houston Rockets with the 18th overall pick in the 2015 NBA draft.
Back injuries shortly before the season began — and an eventual back surgery — shortened his production in Houston. He was then included in part of the eight-player trade that sent Chris Paul from the Clippers to the Rockets in July 2017.