Gustafson will participate in the primarily male-dominated tournament this summer.
Megan Gustafson will play in The Basketball Tournament after being cut by the WNBA's Dallas Wings last week, according to espnW.
Gustafson will join the Iowa United team in this summer's tournament, which features a 64-team, winner-take-all format and is mostly made up of male players. The winners receive a $2 million grand prize.
"When I got cut from Dallas, that was super disappointing, and I was wondering what was next for me in terms of this summer," Gustafson said. "My ultimate goal is to play in the WNBA. I honestly think I'm ready right now.
"I'm going to keep working as hard as I possibly can. I'll go play with the guys for a while until the WNBA calls me back."
Jon Mugar, the tournament's founder and CEO, told espnW that Gustafson is the first active professional women's player to join the event. Over 15 women have participated in TBT over the past five years, including former WNBA champion Nikki Teasley in 2014.
Iowa United will feature former players from Iowa, Iowa State, and Drake men's college basketball teams. Former Hawkeyes Nicholas Baer and Peter Jok will play with Gustafson, who said facing male competitors is "nothing new to me."
The Wings drafted Gustafson with the No. 17 overall pick in April before going on to waive her in May. She led the nation by averaging 27.8 points per game last season at Iowa before going on to win the Naismith Award.
The Basketball Tournament will start on July 19 at eight regional sites and concludes with its Championship Week on Aug. 1-6 in Chicago.