TORONTO (CP) - The Raptors parted company with veteran Alvin Williams on Wednesday, giving his No. 20 jersey almost immediately to newcomer Fred Jones.

The handover was the latest move in the Raptors' roster overhaul this off-season.

Raptors president and GM Bryan Colangelo said the team agreed on a settlement with Williams, restricted to just one game the past two years because of knee problems, to free up a roster spot. The team used it to sign Jones, the 2004 NBA slam dunk champ, to a three-year deal worth about $11 million US.

Williams, who spent eight years in Toronto, said the move was not unexpected.

"I really wanted to get another chance to play for Toronto," he said in a conference call from Philadelphia. "I think it was more of a business situation that I got caught in the middle of, that's the more disappointing thing. I felt that I could play . . ."

Williams has been sidelined by an injured right knee that has limited him to one game since March 19, 2004. He had microfracture surgery on the knee in November 2004 and arthroscopic surgery in December.

Williams knew this day was coming, and sold his house in Toronto at the end of the season. He had asked coach Sam Mitchell as the season wound down, and the Raptors were well out of playoff contention, to let him play.

Mitchell told him to ask Bryan Colangelo.

"That's when I basically knew it was a done deal," said Williams.

Williams, who turns 32 next week, is the club's all-time assist leader with 1,791 and second in games played at 417. He averaged 9.3 points and 5.6 assists in the regular season and 12.5 points and 4.3 assists in 18 post-season games.

"It's probably bittersweet," said Colangelo. "I'm sure he would like to play and complete the process here but at the end of the day we felt like it was best, I think from both sides, to move on and that's why both sides came to this agreement."

Williams hopes to catch on with another NBA team. Colangelo mentioned hiring Williams in some capacity with the club down the road, but the point guard said there had been no discussions about possible employment.

Meanwhile, Jones joins the Raptors after four seasons with the Indiana Pacers. The team is also expected to announce the signing of Slovenian forward Uros Slokar, ending a flurry of off-season moves as Colangelo continues to put his stamp on the team.

With the release of Williams, Chris Bosh, Morris Peterson, Joey Graham and Jose Calderon will be the only players from last season that will be with the Raptors when training camp opens.

There's also no more Williams on a team that had three last season - Alvin, Eric and Aaron.

Jones, an athletic player who can play both point guard and shooting guard, earned respect around the league after he stepped in when the Pacers were decimated after the infamous brawl in Detroit, Nov. 19, 2004.

"It was a bad situation for our team, we never got back on track after that," said Jones. "But I had an opportunity to step out and do different things, I think I showcased myself pretty well."

Jones went into the stands during the brawl at Auburn Hills to try to get his teammates out of danger and to the dressing room, and video footage showed he was hit in the back of the head by David Wallace, the brother of former Pistons star Ben Wallace. The Pacers were hit hard by suspensions - Ron Artest was suspended for the rest of the season, Stephen Jackson received a 30-game suspension, Jermaine O'Neal, 15 games, and Anthony Johnson, five.

"It was so tough to get over," said Jones. "The next three games we had six players. It was good at one point that I was on the floor, I was playing 48 minutes, getting to do my thing and play. But we were competing for a championship that year, and that's way more important than getting individual stats or playing."

The six-foot-two Jones averaged 9.6 points a game as a backup last season, and 10.6 points and 3.1 rebounds two seasons ago.

"This is a great opportunity for me," Jones said. "We're putting together a really competitive team. I think the sky's the limit for us."

The announcement comes days after guard John Salmons backed out of a planned deal with the Raptors, instead signing with the Sacramento Kings.