In addition, the Knicks sent a 2019 second-round pick to the Sixers and have agreed to swap rights on another future second-rounder with Philadelphia for the ability to shed Outlaw's contract in the trade.
Wear played his way onto the Knicks' roster with a strong training camp after going undrafted this past summer out of UCLA.
"I'm very excited to be part of the team," Wear said. "I'm just going to remain humble. I came in here and working and not expecting anything, playing defense, taking what comes to me and not force anything.
"There were 15 roster spots coming in. My situation as an undrafted free agent, I knew I needed to showcase what I can do. I was very overwhelmed. You work your whole life to get to this point. To come in and have to earn it is very gratifying."
The Sixers parted with Arnett Moultrie as part of the transaction and, according to sources, plan to waive Outlaw. Moultrie was waived by the Knicks.
Outlaw, drafted out of high school by Portland with the No. 23 overall pick in 2003, has played for the Los Angeles Clippers, Brooklyn and Sacramento in addition to the Blazers. He was acquired by New York in the offseason as part of a minor trade with the Kings in which he and Quincy Acy were swapped in August for Wayne Ellington and Jeremy Tyler.
Outlaw has averaged 8.5 points and 3.2 rebounds in his 11 NBA seasons.
"Travis Wear is another impressive rookie," Knicks president Phil Jackson said recently. "He's 6-10 with a terrific handle, outstanding athleticism and a nice touch from beyond the arc. He was overshadowed at UCLA but has the skill set to play every position from 1 to 4. We'll eventually place him in the D-League, where his possible NBA future solely depends on his ability to learn how to defend."
As a bonus for the Knicks, this trade is projected to shave nearly $4.7 million off their season-ending luxury tax bill.
Before the trade, New York was $14,967,739 over the tax line, resulting in a tax bill at season's end of $28,668,423. The difference in salaries between Outlaw and Moultrie takes the Knicks down to $13,103,529 over the tax threshold, which computes to $24,008,823 in tax owed.
Information from ESPN.com's Ian Begley contributed to this report.