Parker, 36, has played his entire 17-year NBA career with the Spurs. He was named an All-Star six times and won four championships with the franchise during his decorated tenure.
Parker averaged a career-low 7.7 points, 3.5 assists and 1.7 rebounds per game last season. He also averaged a career-low 19.5 minutes per bout in 55 games.
Spurs coach Gregg Popovich released a statement on Parker's decision to leave San Antonio.
"It's difficult to put into words how important Tony Parker has been to the Spurs franchise over the past two decades," Popovich said. "From his first game in 2001 at age 19, TP has impressed and inspired us -- day-after-day, game-after-game, season-after-season -- with his passion, dedication and desire."
"We are grateful to Tony for 17 years of truly amazing memories. While the four championships, six All-Star appearances and four All-NBA selections highlight his resume, the biggest joy for me has been to have the pleasure of watching TP grow up before our eyes. All of us in the Spurs organization will miss having Tony in our program and wish him and his family the best as he continues his remarkable career in Charlotte."