Paul averages 20.4 points and leads the NBA with 11.2 assists.
Paul hurt the knee at Golden State on Wednesday. Then, on the last play of regulation Friday night against the Chicago Bulls, Paul was chasing an errant pass when he went out of bounds striking a camera on the same spot he got injured two nights earlier.
"It was based on how he felt today, this morning and on the way to the arena," New Orleans coach Jeff Bower said.
Darren Collison will start in place of Paul.
"It's just short term, day to day is the extent of it," Bower said.
Also, reserve forward James Posey did not play against Memphis because of a strained right Achilles'.
Information from the Associated Press was used in this report