Adrian Wojnarowski of ESPN reported Sefolosha's decision. Sefolosha is the seventh NBA player to withdraw from the restart, joining Trevor Ariza, Avery Bradley, Davis Bertans, Willie Cauley-Stein, Wilson Chandler and DeAndre Jordan.
Jordan is the only one of the seven to cite a positive COVID-19 test as the reason.
Sefolosha, 36, averaged 2.2 points and 2.3 rebounds in 41 games with the Rockets this season. He was not part of the Rockets' regular rotation when the NBA season was suspended because of the pandemic, appearing in just one of the team's final seven games.
The Rockets' rotation is yet to be impacted by withdrawals, so it will likely look similar to the nine-man group Mike D'Antoni was using before the league was suspended. Sefolosha's decision will only become a problem if a wing player is injured or is forced to miss time after contracting the virus, at which point the Rockets' thin depth will become more apparent.
The NBA season is set to resume July 30 in Orlando.