The 30-year-old Pekovic has battled a series of ankle and Achilles injuries in his six-year career. He is owed $12.1 million this season and $11.6 million in 2017-18, but insurance will cover a portion of his salary.
Pekovic appeared in only 12 games in 2015-16 and has never played in more than 65 games in a season. He signed a five-year, $60 million contract before the 2013-14 season.
In 271 career games, Pekovic is averaging 12.6 points and 6.7 rebounds per game.