Allen said he will use the time off this season and over the offseason to be with family and reassess whether he will play in the 2015-16 season.
"Over the past several months, I have taken a lot of time to deliberate what is best for me," Allen said. "I’ve ultimately decided that I will not play this NBA season."
Allen, 39, spent the previous two seasons with the Miami Heat and had not previously made a decision on whether he would play this season. He drew interest from several teams, including the Atlanta Hawks and Cleveland Cavaliers.
In 2013-14, Allen averaged 9.6 points while shooting 44.2 percent from the field and 37.5 percent from three-point range in 26.5 minutes per game.
Over 19 seasons in the league, he has averaged 18.9 points per game. Allen is the NBA's all-time leader in three-point field goals made.
- Molly Geary