The 6-foot-7 Barry signed as a free agent with the Rockets before last season and averaged 3.7 points and 1.4 assists in 56 games.
Barry, 37, has played 14 seasons in the NBA. He was selected by Denver in the first round of the 1995 draft, but was traded to the Los Angeles Clippers before his rookie season. He was traded to Miami in February 1998 and also played for Chicago (1998-99), Seattle (1999-2004) and San Antonio (2004-08), where he played on championship teams in 2005 and '07.
Barry had not rejoined the team in the preseason.