Calathes reportedly sought to pursue a more lucrative offer to play professionally in his native Greece, but Memphis elected to keep him after it was unable to acquire an upgrade at his position.
Calathes, 25, was suspended 20 games in April for violating the NBA's drug policy, which forced him to miss the playoffs.
He was named Rookie of the Month in February and averaged 4.9 points and 2.9 assists in 71 games last season for the Grizzlies, who won 50 games and earned the No. 7 seed in the Western Conference before losing to the Oklahoma City Thunder in the second round of the playoffs.
Calathes will serve the remaining 13 games of the suspension to open the 2014-15 season.
A second-round pick to the Timberwolves out of Florida in 2009, Calathes chose to instead bypass the NBA and enjoyed stints with Panathinaikos B.C. in Greece and PBC Lokomotiv-Kuban in Russia before making his NBA debut last season.
Nick Calathes stays with Grizzlies for $800K this season, losing out on $6M deal in Greece. He serves rest of NBA suspension to start year. — Adrian Wojnarowski (@WojYahooNBA) July 15, 2014