Happy Walters told SI.com he met Tuesday with Suns owner Robert Sarver and Coach Alvin Gentry in Los Angeles but the two sides were unable to come to terms on a new deal for his client.
The 6-foot-10, five-time all-star was scheduled to earn $17.7 million with the Suns, where he has spent all eight years of his pro career.
Last season, he averaged 23.1 points and 8.9 rebounds in 82 games last season.
The 2003 NBA Rookie of the Year has averaged 21.4 points, 8.9 rebounds and 1.4 blocked shots in 516 career games. He suffered a partially detached retina in February 2009 and had microfracture surgery in October 2005.