The full financial terms of the agreement weren't immediately known, but sources said Dallas was discussing a multiyear contract with Carter and hoped to have him signed by Saturday.
Carter was waived Friday by the Phoenix Suns, who had 72 hours starting at 2 p.m. ET to waive the eight-time All-Star and pay only $4 million of the $18 million that he's owed for the 2011-12 season.
The Suns and Carter amended his contract in June to delay the guaranteed-salary date in Carter's final contract year until after the lockout ended. Waiving Carter inside the first 72 hours after the league's scheduled start of free agency Friday likely ensures that the Suns avoid luxury-tax territory this season, even after completing the re-signing of Grant Hill to a one-year, $6.5 million deal.
Carter landed in Phoenix in December 2010 when his hometown Orlando Magic dealt him to the Suns with Marcin Gortat, Mickael Pietrus, $3 million and a 2011 first-round draft pick in exchange for Hedo Turkoglu, Jason Richardson and Earl Clark. A month later, Carter became the 37th player in league history to reach the 20,000-point plateau, but it has long been assumed around the league that Phoenix wanted him in the deal purely for the payroll relief Carter's contract affords.
The 34-year-old lasted only 51 games with the Suns and averaged 13.5 points while shooting 42 percent with Phoenix.
Marc Stein is a senior NBA writer for ESPN.com.