Terms of the deal were not immediately available.
Rod Beard of the Detroit News reported the deal is for two years.
After a 2017-18 NBA season in which he landed on the All-Rookie Second Team, Jackson regressed. In July 2019, the Grizzlies traded Kyle Korver and Jevon Carter to Phoenix for Jackson, De'Anthony Melton and two future second-round picks.
Memphis initially placed Jackson with its G League squad, and he was able to reestablish his scoring touch while averaging 20.3 points per game over 26 contests.
Now Detroit is hoping it's buying low on a 23-year-old still teeming with potential.
The deal reunites Jackson with his former Kansas teammate Sviatoslav Mykhailiuk and brings him back to the Motor City after he led Consortium College Prep School to its first state title in 2014.