"After much internal discussion, the Rockets will be parting ways with Carmelo Anthony and we are working toward a resolution," Rockets general manager Daryl Morey said in a statement. "Carmelo had a tremendous approach during his time with the Rockets and accepted every role head coach Mike D'Antoni gave him. The fit we envisioned when Carmelo chose to sign with the Rockets has not materialized, therefore we thought it was best to move on as any other outcome would have been unfair to him."
Houston and the future Hall of Famer tried to make the relationship work, but Anthony's role was reduced over the course of the season due to his struggles.
The 34-year-old forward averaged 13.4 points per game, 5.4 rebounds, 0.7 blocks and 0.5 assists while playing 29.4 minutes per game for the Rockets. Anthony came off the bench in eight of his 10 appearances.
"[Anthony] was trying to make the necessary sacrifices, and it wasn't fair to him as a Hall of Fame player to play in a role that wasn't good for him," Rockets head coach Mike D'Antoni said, via ESPN. "We did it, we tried it, both parties wanted it to happen, and it didn't happen. Now we're moving on."
The Rockets fell just shy of reaching the NBA Finals last season after losing in seven games against the Golden State Warriors in the Western Conference Finals.
D'Antoni and the Rockets were hoping Anthony would be the final piece to propel them to a championship.
"In the summer, we tried to hit a home run. It didn't work out," D'Antoni told reporters Thursday. "He tried everything he could."
Per ESPN, the Rockets do not plan to immediately release Anthony. They will allow his representatives to search for any landing spots before potentially waiving him.
Since Anthony signed with Houston as a free agent this past summer, he is not eligible to be involved in a trade until the Dec. 15 trade restriction period has passed. The Rockets could opt to move him after that date.
Anthony left the Rockets last Friday as the team decided to minimize his role -- and future -- with the franchise.