General manager Chris Wallace announced the deal Wednesday. Terms were not disclosed.
The 6-foot-9 Casspi has started 145 of 552 games in his career with Sacramento, Cleveland, Houston, New Orleans, Minnesota and Golden State. Now 30, Casspi played 53 games with the Warriors last season and averaged 5.7 points and 3.8 rebounds. He shot 58 percent from the floor and 45.5 percent outside the arc.
Sacramento drafted the native of Holon, Israel, at No. 23 overall in 2009. He became the first Israel-born player to play in an NBA regular season game on Oct. 28, 2009.
The Grizzlies also signed Kyle Anderson to a four-year deal announced Monday.
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