"We met with Chandler and spoke with him and his representation numerous times during his rehab process, laying out a number of options to help integrate a healthy and effective Chandler back on the floor," Grizzlies general manager Chris Wallace said in a statement.
"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. Chandler subsequently chose to continue his rehab in Los Angeles. We will continue to monitor Chandler's progress."
Parsons has played in just 73 games for the Grizzlies since signing a four-year, $94-million deal in 2016.
His most recent injury came three games into this season and held him out for the following 28 contests. He was medically cleared on Dec. 21 but was listed as a healthy-inactive for that day's game against the Sacramento Kings and has yet to make his return.
The Grizzlies will owe Parsons the $38 million remaining on his deal through next season if they choose to part ways with the forward, according to Wojnarowski.