Mavericks owner Mark Cuban said in an email Saturday that Ellis has agreed to a contract. It is a three-year deal worth at least $25 million, according to sources close to the process.
The deal with Ellis was reached after first-round pick Shane Larkin broke his right ankle in summer league practice Friday. Dallas also is backing out of a three-year, $9 million deal with Devin Harris because of a toe injury, sources close to the situation said.
Ellis figures to start alongside point guard Jose Calderon, another free agent who signed a four-year, $29 million deal.
The 27-year-old Ellis averaged 19.2 points with Milwaukee last season.
Information from ESPN.com's Marc Stein and The Associated Press was used in this report.