Malone, 34, had one year at $2.5 million remaining on a seven-year, $31.5 million contract he signed prior to the 2008-09 season.
Malone scored 20 or more goals in three of his first four seasons with the Lightning but was limited to 11 goals in 81 games over the past two seasons.
A fourth-round pick (No. 115) of the Pittsburgh Penguins in the 1999 NHL Draft, Malone has career totals of 179 goals and 370 points in 641 regular-season games for the Penguins and Lightning. He has nine goals and 22 points in 43 Stanley Cup Playoff games and went to the Cup Final with the Penguins in 2008, when they lost to the Detroit Red Wings.
The Lightning used their first compliance buyout on forward Vincent Lecavalier following the 2012-13 season.