The Islanders placed DiPietro on unconditional waivers Tuesday, a day after Newsday's Arthur Staple reported the team will use a compliance buyout on DiPietro's contract, which has eight years remaining at $4.5 million annually.
By using a compliance buyout, the Islanders would pay DiPietro $1.5 million annually for the next 16 years. That money would not count against the NHL salary cap.
"It is an extremely tough decision to use the compliance buyout on Rick's contract," Islanders general manager Garth Snow told Newsday. "His drive to win games and compete at the highest level for the New York Islanders was never questioned. With Rick back at 100 percent health, we wish him nothing but the best as he continues to pursue his career."
DiPietro made three appearances for the Islanders in 2012-13 before being sent to the Bridgeport Sound Tigers of the American Hockey League. He went 0-3-0 with a 4.09 goals-against average and .855 save percentage.
The first selection at the 2000 NHL Draft, DiPietro appeared in 319 games for New York, going 130-136-36 with a 2.87 GAA and .902 save percentage.