Parsons, who spent the last two seasons with Dallas, also received a max offer from the Trail Blazers on Friday.
The five-year veteran will join a starting five in Memphis that includes Zach Randolph and Marc Gasol. The team is also aiming to re-sign unrestricted free agent point guard Mike Conley.
“This is a perfect fit for me and I can't wait to get started!!” Parsons wrote on Instagram.
Parsons averaged 16.9 points and 5.5 rebounds for the Mavericks in his two years there.
– Kenny Ducey