Kaman is not injured, but hasn't played in New Orleans' last two games. He was not active for Wednesday's loss at Oklahoma City, and was not with the team for Friday's win over Orlando.
"We had a conversation with Chris and expressed that the Hornets are going to go in a different direction. We mutually decided for a number of reasons that we are not going to play Chris as we pursue a trade," said Hornets general manager Dell Demps in a statement. "Chris has been the ultimate professional during this process and we thank him for the way he has handled the situation."
New Orleans, which is owned by the NBA, acquired Kaman in the December trade that sent Chris Paul to the Clippers.
Kaman averaged 9.2 points and 6.6 rebounds in 17 contests this season, but was playing only 22.7 minutes per contest -- the lowest average since his rookie season of 2003-04.
The 29-year-old has posted 11.7 points and 8.3 rebounds in 510 career games. He spent his first eight seasons with the Clippers, who picked him sixth overall in the 2003 draft.