ESPN's Marc Stein reported the deal is worth $1.2 million.
ESPN.com's Chris Haynes first reported Jennings reached a verbal agreement with the Wizards for the rest of this season on Tuesday.
According to Adrian Wojnarowski of The Vertical, "The Knicks’ front office and coaching staff hadn’t been enamored with Jennings’ mindset amid the team’s struggles this season, league sources said, and ownership agreed to pay him the balance of the $5 million owed him on his contract this season."
The veteran guard averaged 8.6 points and 4.9 assists in 24.6 minutes per game for the Knicks, shooting 38 percent from the field and 34 percent from beyond the arc. After averaging at least 15 points per game in his first six seasons, Jennings hasn't reached double-digit point averages in his last two.
A ruptured Achilles tendon suffered in January 2015 that cost him a year of NBA action didn't help in that regard, and Jennings went from being a consistent starter earlier in his career to a role player coming off the bench following his injury.
At his best, Jennings can bring energy off the bench and an infusion of scoring. While he isn't the consistent scorer he was earlier in his career, Jennings has never been afraid to attack and will give the Wizards another offensive playmaker.
The Wizards made improving their bench a priority at the trade deadline, landing forward Bojan Bogdanovic to give the team another scoring threat on the second unit. Signing Jennings is another move in that direction, and his presence could take some pressure off Washington's excellent starting lineup.
While Bogdanovic and Jennings probably won't be enough to vault Washington past the Cleveland Cavaliers in the Eastern Conference, the Wizards did well to supplement John Wall, Bradley Beal and the team's dynamic starting five.