Curry, 6-foot-3 and 180 pounds, led the nation's freshman with a 20.2 scoring average.
Liberty went 23-12 this season, finishing with an 88-65 loss to James Madison on Monday night in the CollegeInsider.com tournament. Curry scored eight points in the loss.
"This is a difficult decision that I have reached after close consultation with my family and others close to me," he said in a statement released through the school.
He said the decision "is based on my desire to develop as an athlete to the fullest of my potential and take advantage of new opportunities that may be available to me in a higher-rated conference."
There was no indication in the release whether Curry has already decided where to transfer, and the school said Curry would not have any additional comment Tuesday.
Coaches at other schools are not permitted to comment on potential transfers.
Liberty coach Ritchie McKay said he's disappointed with Curry's decision but understands and does not fault him for seeking to play against a higher level of competition.
Like his brother, who is one of the best-known players in college basketball, the younger Curry splashed onto the scene as a scorer.
He scored 23 and 18 points in his first two college games and then had 26 as the Flames won 86-82 at Virginia, just their second victory in eight games in the series.
His season high of 35 points also came on the road, leading the Flames to a 91-80 victory at Virginia Military Institute before the largest crowd in VMI's history.