Knicks President Phil Jackson signed Odom, who played for him in Los Angeles, at the end of last season. But the former Sixth Man of the Year never played a game for New York.
Jackson says Friday in a statement: "Unfortunately, Lamar was unable to uphold the standards to return as an NBA player. We found it necessary to free up the roster spot."
But the Knicks are keeping Aldrich, who averaged 2.0 points and 2.8 rebounds in 46 games last season.