The Commercial Appeal earlier reported that after being re-evaluated by team doctors, the decision was made that it is not in Conley's best interests to return this season.
When asked by reporters Monday if any of the slew of injured Grizzlies -- including Conley -- would return this season, coach Dave Joerger said, "I think we'll see P.J. [Hairston] again."
Conley has been sidelined for nearly a month because of left Achilles tendinitis. He will be a free agent this offseason.
The injury-ravaged Grizzlies have already lost starters Marc Gasol (foot) and Mario Chalmers (Achilles) for the season.
Memphis is battling the Portland Trail Blazers for the fifth seed in the Western Conference playoffs but is currently mired in a six-game losing streak.
The 28-year-old Conley averaged 15.3 points and 6.1 assists per game this season, his ninth with the Grizzlies.
Information from The Associated Press was used in this report.