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"After talking with Allen and our medical staff, we feel that resting Allen for the remainder of the season is the best course of action at this time," Pistons president of basketball operations Joe Dumars told the team's website.
The 33-year-old ten-time All-Star missed 16 games after suffered the back injury against New Orleans on February 25, returned last Sunday and averaged 7.7 points and 2.7 assists in nearly 19 minutes of the past three games.
He complained about his role as a reserve, saying he would rather retire than come off the bench next season.
"While he has played in our last three games, he is still feeling some discomfort and getting him physically ready to compete at the level he is accustomed to playing this late in the season does not seem possible at this point," Dumars added.
The Pistons acquired Iverson from Denver on November 3, and in 54 games with the Detroit the former 2001 league MVP averaged 17.4points and 4.9 assists.
His 20-plus million U.S. dollars contract expires after this season.