The deal includes a second-year player option.
Gay spent the past four seasons with the San Antonio Spurs. He was a crucial piece for head coach Gregg Popovich who provided scoring and rebounding help when his starters needed a rest.
As the Spurs continue to build around their young core, keeping a 34-year-old didn't seem to make much sense. Gay will be of more value to a contender like the Jazz.
While he's no longer the dynamic offensive player he was at his peak, the UConn alum has carved out a niche as a valuable role player in the latter stage of his career. He averaged at least 10.8 points per game every season with the Spurs primarily coming off the bench.
Gay averaged 11.4 points per game while shooting 38.1 percent from deep in 63 games in 2020-21.
The Jazz will be counting on Gay to continue playing at that level as they look to build on their success from this past season, during which they went a Western Conference-best 52-20 before being ousted in the second round. It's a low-risk, high-reward addition for Utah.