General manager Marc Bergevin told the impending free-agent goaltender that he will not be offered a new contract.
A native of Vantaa, Finland, the 35-year-old Niemi just finished his second season in Montreal.
In 17 games this season, Niemi was 8-6-2 with a goals against average of 3.78 and an .887 save percentage.
A veteran of 11 NHL seasons, Niemi is a career 242-140-57 with a GAA of 2.57 and a .912 SV% over 463 games with the Chicago Blackhawks, San Jose Sharks, Dallas Stars, Pittsburgh Penguins, Florida Panthers and Canadiens.
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