Brian Windhorst of ESPN reported the deal is for one year at $2.3 million.
Green, 30, spent the 2016-17 season with the Orlando Magic. He averaged a career-low 9.2 points and 3.1 rebounds last season after signing a $15 million, one-year contract in Orlando.
The Magic shut him down with 11 games remaining with back issues.
"I want to play," Green told reporters at the time. "I wanted to finish out the games, but I've got to make sure I'm right before I step out on the floor. But it was the team's decision to shut me down.
"If it was the playoffs, I could play. But it makes no sense at this point to try to come back and force the issue."
Green has played for the Boston Celtics, Memphis Grizzlies, Los Angeles Clippers and Magic since the beginning of 2014-15. Picked fifth overall in the 2007 draft, Green has often been a tantalizing talent who could never put it all together on both ends of the floor.
The Magic were outscored by 9.2 points per 100 possessions with Green on the floor last season and were particularly bad on the offensive end, averaging just 100.8 points per 100 possessions, per Basketball Reference.
There is no talk of potential anymore with Green. He is who he is at this point, and the fact that he's on the floor at all after sitting out a year following open-heart surgery remains remarkable. And, for once, it appears Green's going to get paid like a middle-of-the-road backup.