The Grizzlies announced Monday in a statement that the team has ended its one-year contract with the 10-time All-Star and former league MVP in what it called a mutual agreement.
Iverson began an indefinite leave of absence on Nov. 7 to deal with a personal issue after playing only three games with Memphis, all in California.
General manager Chris Wallace says they agreed Iverson is stepping away from the game to focus on those personal matters.
Wallace says the Grizzlies wish Iverson the best.