Waiters, who hasn't played since December 22, said last month he was aiming to delay surgery until the offseason after forgoing the option to have a procedure over the summer.
Waiters was adamant that he wasn't going to have surgery, according to a report from NBC Sports, saying "No, hell no", to the possibility of an operation. Waiters, 26, was in line to receive a $1.1 million bonus if he played in at least 70 games this season.More news: Obamas reveal more details and images for Presidential Center in Chicago
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Waiters' stats aren't mind-blowing: 14.3 points, 2.6 rebounds and 3.8 assists per game, shooting just 39.8% from the field and 30.6% from three-point range in 30 games played.
The Heat are now in fourth place in the Eastern Conference with a 24-17 record.
Prior to this decision, Waiters had been resting and rehabilitating the ankle, but it was unclear if he had been making significant progress. Tyler Johnson has been starting in his place with Wayne Ellington seeing extended minutes off the bench.