Nance will earn $2.2 million in 2018-19 before he has the option of becoming a restricted free agent next summer.
After arriving in Cleveland just ahead of the NBA trade deadline in February, Nance was a solid role player for the Cavs. He averaged 8.9 points and 7.0 rebounds in 20.8 minutes.
According to Schultz, both Nance and the Cavaliers want to get a new contract completed, which makes sense.
Agreeing to a deal now would provide Nance with long-term security and avoid what can become a tricky situation in restricted free agency. This time last year, few would've expected Rodney Hood to still be without a contract.
By re-signing Kevin Love to a four-year, $120 million extension, the Cavs indicated they aren't racing to the bottom of the NBA following LeBron James' departure. Nance provides nice depth behind Love, and he can move to center to give Tristan Thompson a break for stretches.
Nance would fit with a team that is looking to win now, and he'll turn just 26 in January, so he'll have value for Cleveland should the team circle back and decide to blow things up. Nance could help the Cavs on the court through a rebuild, or he could be a trade asset if the front office wants to stockpile draft picks.