Parsons left the team and the sides agreed to part ways last weekend.
According to ESPN, Parsons will leave the team for an indefinite period of time until his agent and management can decide what is the appropriate action for his future.
The swingman signed a four-year, $94.5 million maximum contract with Memphis in the summer of 2016.
Memphis offered Parsons an opportunity with its G League affiliate but wouldn't assure him a spot on the active roster.
The reason is Parsons is making $24.1 million this season (about $13 million of that still to be paid), and a fully guaranteed $25.1 million next season. After playing just 34 and 36 games in his first two seasons, respectively, with the Grizzlies, there was hope for Parsons to turn things around this campaign.
Grizzlies general manager Chris Wallace says Chandler Parsons has chosen to continue rehabilitation in Los Angeles out of the options Memphis gave the 30-year-old forward.
"In the last of these conversations, we presented Chandler clear options for him and his representatives to choose, which included a short three-home-game stint for the Memphis Hustle or rehab either in Memphis or in Los Angeles with the training team of his choice".
According to the report, the final straw between Parsons and Memphis centered around the possibility of the team assigning him to its G League affiliate.
Parsons has been cleared to play since December 21, but hasn't seen the court again despite being active in practice. The Grizzlies and Parsons couldn't agree on a G League assignment plan that would assure Parsons of his return to the active National Basketball Association roster this season. "We will continue to monitor Chandler's progress". The team still believes Parsons will have value as an expiring contract, even if it takes into the offseason to make a deal. Trips to the G League for veterans are traditionally treated as rehab assignments, not tryouts.
Parsons averaged 5.7 points and 1.3 rebounds in 15.3 minutes per game over three appearances before he was shut down with the knee injury.