Souray, who was critical of the Oilers last season, was asked to stay away from training camp while the team tried to facilitate a trade of the veteran defenseman.
The team has been unsuccessful in finding a trade partner, so he will begin the season in the minors playing for the Hershey Bears.
The Oilers placed him on waivers July 2, and cleared them the next day.
Souray, 34, has two years left on his contract that pays $4.5 million annually. His cap hit for the next two years is $5.4 million.
He missed 16 games last season because of a concussion, and 29 games because of a broken hand.
Scott Burnside covers the NHL for ESPN.com.