The left-hander said he came to the decision after consulting with his family and the Dodgers.
The 2012 American League Cy Young Award winner was traded to Los Angeles from the Boston Red Sox as part of the Mookie Betts deal for Alex Verdugo, Connor Wong and Jeter Downs on Feb. 10.
His decision means fans won't get to see him take the mound until 2021 at the earliest.
While it's certainly a blow to the club's starting rotation, perhaps no roster is built better to withstand as massive a loss as the Dodgers. Price was slotted as the third starter in the rotation behind Clayton Kershaw and Walker Buehler—two All-Stars in their own right. The team is also carrying Ross Stripling, Dustin May and Tony Gonsolin, each a former top prospect who has experience starting.
That list doesn't include Julio Urias and Alex Wood, who are penciled in to the back end of the rotation. Los Angeles will be able to mix it up in replacing Price by depending on matchups.
Even still, the Dodgers are losing a pitcher who last year compiled a 4.28 ERA and 1.31 WHIP to go with 128 strikeouts and 32 walks in 107.1 innings.
It remains to be seen how the loss of Price will affect L.A.'s World Series odds. Caesars Palace listed the club at +350 (bet $100 to win $350) to win the title in 2020, tied with the New York Yankees as the favorites heading into MLB's truncated 60-game season.
Even as he's yet to throw a single pitch for his new club, Price has helped take care of minor league players in the organization. When MLB was on hiatus because of the coronavirus pandemic, Price donated $1,000 to each of the 220 players in the team's farm system.
Brodie Brazil of NBC Sports California noted Price will forfeit nearly $12 million in salary by opting out.