The school said Friday that Iverson intends to remain a student at Memphis this spring to focus on his academics before heading to another school.
Iverson averaged 4.6 points, 1.9 rebounds and 11.8 minutes in eight games this season.
Memphis announced on Jan. 6 that Iverson had been suspended for a violation of team rules. He hadn't played since.
Tigers coach Josh Pastner said in a statement that ''we thank Kuran for his contributions to the program and wish him well in his future academic and athletic endeavors.''
Memphis (10-6, 3-2 American Athletic Conference) hosts UCF on Saturday.