Kiprusoff, 36, has one-year left on a six-year, $35 million contract. His cap hit is $5.833 million, but his actual salary is just $1.5 million.
He posted an 8-14-2 record with the Flames this season, along with a 3.44 goals-against-average and a .882 save percentage.
Over his NHL career with the San Jose Sharks and Flames, Kiprusoff has played in 623 regular-season games and has posted a 319-213-64 record with a 2.49 goals-against-average, a .912 save percentage and 44 shutouts.
Kiprusoff was originally drafted by the Sharks in the fifth-round (116th overall) of the 1995 NHL Entry Draft. He was traded to the Flames on Nov. 16, 2003 in exchange for a second-round draft pick.
Calgary is now left with the unproven Karri Ramo, who has a 11-21-10 record in 48 career NHL games, all with Tampa Bay. Ramo, however, has since excelled in the KHL.