Wiseman has been recovering from a meniscus repair that he had in April 2021, and recent swelling in his right knee precluded him from continuing on a path to return this season. There are no plans for another surgery, the team said.
"Ultimately, very simple: We're protecting James' future," coach Steve Kerr said. "It makes the most sense to take this route. Again, I feel terrible for James. He's been through so much already in just two seasons. But, his long-term health looks good, the knee looks sound. It's just a decision that makes the most sense for his own best interest, and his as well."
Wiseman, the No. 2 overall pick in the 2020 NBA draft, missed the first 73 games of the season and had his rookie season cut short with the meniscus injury. Wiseman averaged 17 points and 9.7 rebounds in three G League games earlier this month before the swelling slowed his return process.
Wiseman will remain in the Bay Area to continue his rehab, which will include strength and conditioning and rest.
ESPN's Kendra Andrews contributed to this report.