McGrady has expressed displeasure with his limited playing time this season. The seven-time all-star has averaged 7 1/2 minutes per game since returning from knee surgery this month.
"After multiple conversations with Tracy and his representatives, we have agreed to look into trade opportunities and have granted him an indefinite leave from team activities," Morey said, confirming reports the team would try to trade McGrady.
The 30-yard-old McGrady, a two-time NBA scoring champion, began his leave of absence during the weekend.
McGrady has averaged 21.9 points, 6.1 rebounds and 4.7 assists in 790 games with the Toronto Raptors, Orlando Magic and Houston.