A team spokesman told the newspaper that Wheatley made his decision on Thursday, one day before the start of the Wolverines' training camp.
Wheatley, the son of former Wolverines running back Tyrone Wheatley, suffered a broken foot in March that sidelined him for the remainder of the spring program.
Wheatley's father, who coached for two seasons under current Michigan coach Jim Harbaugh, told the newspaper he would back his son's decision.
"He made the decision, and I support him. Nothing more, nothing less," the elder Wheatley said. "I told him, 'You're 21, you're a grown man. You know what's best for you, and I support you.'"
The younger Wheatley had redshirted as a true freshman in 2015 and reeled in just three catches in back-to-back seasons. He has totaled 61 receiving yards and a touchdown.
The 6-foot-6, 265-pound was utilized mainly in a blocking role at Michigan. It's unclear if he is planning to transfer.
"I haven't really spoken to him," said his father, now a coach with the Jacksonville Jaguars. "He said what he's going to do, and I'm going along with it. At the end of the day, I told him he doesn't have to discuss it or talk to anyone about it. I support him. For me, family is first."