The Carolina Panthers have begun the painful process of reaching the NFL's salary cap. Cornerback Eric Davis, the cornerstone of the team's secondary since 1996, is not expected to return next season. Faced with having to trim more than $10million before March2, the Panthers will release Davis when the league's waiver-system resumes Feb.22. Davis' release will clear nearly half that cap room.

The Panthers have not announced the move, but Davis met with coach George Seifert earlier this week and was told of the team's intention to release him, according to several league sources.

Davis could not be reached for comment Wednesday. In a December interview, he acknowledged he was aware the business side of football could affect his future with the team.

"Do I think something will be done because of my cap number? Yes," Davis said near the end of last season. "What they're going to do, I have no idea."

Seifert was not available for comment Wednesday night.

By waiving Davis, the Panthers will clear $4.95million in salary cap room. Davis, who is coming off one of his better seasons, was scheduled to count $6.317million toward the 2001 cap.

The Panthers still will be responsible for the prorated signing bonus portion ($1.367million) of Davis' contract. But the Panthers will not be responsible for Davis' $3.5million base salary or a $1.45million roster bonus.

The Panthers presently have a salary-cap total of about $77million and need to be under the $67million cap limit by the opening of free agency in March.

Davis, 33, joined the Panthers in 1996 after spending six seasons with San Francisco.

He was a model of consistency, coming up with five interceptions in each of his five seasons with Carolina.

The Panthers extended Davis' contract in 1998. At the time, the team said the two-year, $9.45million extension of the deal through 2001 was a reward for his steady play, and that he deserved to be one of the league's top-paid cornerbacks.

Although Davis showed no signs of slowing down and was in on 73 tackles last season, the team apparently decided it could no longer afford him.

The situation is similar to last year when cap considerations forced the team to release linebacker Mike Barrow. With Davis, the cornerback position would have taken up more than $15.2million in cap space.

Doug Evans, also a starter last year, will have a $6.2million cap figure and Jimmy Hitchcock, who played in nickel situations, will count for $2.7million.

Hitchcock, who was signed last year to compete for a starting job, is the likely candidate to replace Davis.

Deveron Harper, who showed promise as a rookie last season, appears to be the leading candidate to play nickel back. Rashard Anderson, who spent his rookie season as a safety, could be a considered because he played cornerback in college.

The Panthers likely will have to make several more painful cuts in the next few weeks. Offensive linemen James Dexter and Bryan Stoltenberg are other players with high salaries who could be cap casualties.

NOTE: The Panthers will assign six players to NFL Europe: linebacker Dusty Renfro, cornerback Tony Francis, cornerback Jerard White, offensive lineman George Hudson, receiver Kofi Shuck and offensive lineman T.J. Washington. Davis