The Grizzlies announced the move Tuesday.
Memphis drafted Adams with the 22nd overall pick in the 2014 draft after his sophomore season at UCLA.
The 6-foot-5, 209-pound Adams played in 30 games as a rookie last season and averaged 3.1 points and 0.9 rebounds. He also played 11 games in five assignments with the Grizzlies' NBA Development League team, the Iowa Energy, where he averaged 18.1 points and 7.0 rebounds.
Adams helped the Grizzlies go undefeated in winning the Orlando summer league in July. He averaged 16 points and 4.8 rebounds in four games in Orlando.