It's currently unclear what will be sent to Chicago in return.
For the Bulls, this move puts them over $30 million under the salary cap, allowing them enough room to potentially sign two max-contract free agents this summer.
The move adds Hinrich to an already-crowded Washington backcourt.
Current guards on the roster include Gilbert Arenas, Randy Foye, Nick Young, and Quinton Ross. The team is widely expected to add John Wall to the mix as well as the No. 1 pick in Thursday night's draft.
Hinrich's contract pays him $9 million next season and $8 million in 2011-12.
Because this trade can't be completed until Washington officially has the cap room to take on Hinrich's contract, it won't go through until July 8.
Should this deal for some reason fall through, it's been reported that the Sacramento Kings have a similar offer on the table for Chicago.