The Grizzlies will sign Lester Hudson for the remainder of the season.
Hudson has a verbal agreement with Memphis.
Hudson will be eligible for the playoffs because he wasn't waived by the Cavaliers. Hudson's second 10-day contract with Cleveland expired on Wednesday.
Hudson was unable to come to terms with the Cavaliers on a contract for the rest of the season on Thursday.
Hudson averaged 12.7 points, 3.5 rebounds and 2.7 assists in 24 minutes while shooting 39 percent from the field and 25 percent from 3-point range in 13 games for the Cavaliers.