Nolley chose the Tigers over Ole Miss and Georgia.
Nolley, a 6-foot-7 forward, announced in mid-March he was leaving Virginia Tech after earning ACC All-Freshman honors and an honorable mention spot on the All-ACC team. The Atlanta native averaged 15.5 points and 5.8 rebounds last season.
Nolley redshirted his first year in Blacksburg due to an academic issue.
A former ESPN 100 prospect, Nolley scored 30 points against Clemson in his first college game and scored at least 20 points in four of his first six games. He had 22 points and four 3-pointers against preseason No. 1 Michigan State in an upset win at the Maui Invitational.
Nolley could have to sit out next season before having at least two years of eligibility remaining, but the NCAA is expected to meet next month regarding a one-time transfer waiver for all college players. If that passes and goes into effect right away, Nolley would be eligible to play immediately next season.
Penny Hardaway and Memphis are looking to reload this spring after missing on No. 1 recruit Jalen Green, who opted for the G League pathway instead of college.
The Tigers were considered the favorite for Green if he were to play college basketball. Memphis lost James Wiseman, 2019's top-ranked recruit, after just three games last season, and former five-star forward Precious Achiuwa is expected to turn pro. Guard Tyler Harris announced Sunday he was entering the transfer portal.
The lone member of Memphis' 2020 recruiting class is junior college transfer Ahmad Rand.