Hill joined the Bucks in December when the Cleveland Cavaliers dealt him in a three-team trade. He averaged 6.8 points and 2.6 rebounds in 47 regular-season games for Milwaukee.
The 33-year-old upped his production to 11.5 points and 3.5 rebounds per game in the playoffs. Hill was often the first player off the bench for the Bucks, and he coined the rallying “Bench Mob” phrase.
Hill had one year and $18 million remaining on his contract, but only $1 million of that is guaranteed before July 2.
The Milwaukee Journal Sentinel first reported that Hill is expected to be waived.
ESPN’s Malika Andrews contributed to this report.