Coffey's agent, Javon Phillips, confirmed the decision Wednesday night, the deadline for players to withdraw from the draft and return to their schools.
The 6-foot-8 Coffey, who was the primary point guard for the Golden Gophers after playing on the wing his first two seasons, averaged 16.6 points, 3.6 rebounds and 3.2 assists as a junior. He was a third-team All-Big Ten selection for Minnesota, which lost to Michigan State in the second round of the NCAA tournament.
Coffey, a standout at Hopkins High School in the Twin Cities area, was one of three Minnesota natives in the starting lineup for the Golden Gophers this season.
The NBA draft is set for June 20.