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Frye passed on his player option for $6.8 million for the 2014-15 season, which would've been the final season of a five-year, $30 million deal. The Suns were notified of Frye's decision on Monday.
The Suns have a desire to re-sign Frye, sources said, but much will be determined about that viability through the draft and possible trades.
After the diagnosis of an enlarged heart caused Frye to miss the entire 2012-13 season, he had a remarkable comeback season for the Suns. He played 82 games, averaging 11.1 points and 5.1 rebounds, and shooting 37 percent on three-pointers.
Frye, 31, is still a coveted commodity for his ability to spread the floor at 6-foot-11 and consistently make three-point shots. His skill set has never been so highly valued in the league. Across eight seasons in the NBA, he's shot 38.5 percent on three-pointers.