Arenas turned 30 this year and was described as looking "slimmed down" and "explosive," by a source in February when he worked out for the Lakers.
The Magic had acquired Arenas in a trade with the Washington Wizards in the middle of last season but elected to amnesty the mercurial veteran before the start of this season. Arenas averaged 8.0 points, 3.2 assists and 2.4 rebounds over 49 games in primarily a reserve role for Orlando.
The Grizzlies are looking to beef up their scoring as they seek a return to the postseason. Memphis entered play Sunday in fifth place in the Western Conference.
Arenas hopes to sign a deal with Memphis that would keep him under contract for the duration of the season, while the Grizzlies originally were interested in him on a 10-day contract, a source told the Memphis Commerical Appeal.
With his time off, Arenas underwent a similar blood-spinning procedure on both of his knees and hips that Lakers guard Kobe Bryant visited Germany during the offseason to receive. Arenas was treated by Dr. Edward Capla in New York City. Capla used to work under Dr. Peter Wehling, who treated Bryant and New York Yankees slugger Alex Rodriguez. After Arenas reported the procedure made his left knee, which had undergone three operations since 2006, feel springy again, he recommended Capla to former teammate and New Jersey Nets guard DeShawn Stevenson, who also received the treatment.
ESPN The Magazine's Ric Bucher and ESPNLosAngeles' Dave McMenamin contributed to this report.