Friday's announcement marks the second time this week an Indiana player has decided to leave the program. Sophomore guard Stanford Robinson announced earlier this week that he, too, would transfer.
The 6-foot-8 Hoetzel says he is looking for more playing time that would preferably be closer to his California home.
Hoetzel's playing time steadily decreased throughout the season as he averaged 2.4 points in 7.7 minutes.
Coach Tom Crean says Hoetzel is a ''hard worker'' and has a promising ''upside.''