The Grizzlies said Parsons will undergo a procedure called a meniscectomy to repair a partial tear of the medial meniscus.
Memphis announced last week that Parsons was out indefinitely.
The 28-year-old signed a four-year, $94 million contract with the Grizzlies in the offseason but averaged just 6.2 points in 34 games this season. He was plagued by issues with both knees all season.
Parsons has undergone two surgeries on his right knee over the past two years.