The move frees up a roster spot and potentially makes room for guard Jalen Harris, who was recently reinstated by the NBA and the National Basketball Players Association after serving a one-year suspension for a positive drug test.
The Raptors hold Harris's rights as a restricted free agent, but the team had previously been at the maximum 20 players allowed heading into training camp.
Mykhailiuk, a native of Ukraine, averaged 4.6 points and 1.6 rebounds in 56 appearances for the Raptors.
He had exercised his US$1.9-million player option for the upcoming season.
Harris, meanwhile, was suspended on July 1, 2021, after testing positive for a prohibited substance under the NBA/NBPA anti-drug program.
The 24-year-old Dallas native spent the past few months playing for the expansion Scarborough Shooting Stars of the Canadian Elite Basketball League.
Training camp opens Sept. 27 in Victoria.
This report by The Canadian Press was first published Aug. 29, 2022.
The Canadian Press