The Boston Herald and the Boston Globe report that Daniels, who averaged a career-high 13.6 points and 4.6 rebounds last season, will either sign for the $1.9 million biannual exception or be delivered in a sign-and-trade deal with Indiana.
Agent Glenn Schwartzman confirmed the move to the Celtics on Saturday saying both teams would prefer that the sign-and-trade works out, but the Celtics will use the biannual exception to sign Daniels if trade talks fizzle. Schwartzman wouldn't say which other players would be involved in a deal.
The Pacers declined to exercise their option on the 28-year-old in June, which would have been worth $7.3 million next year, according to the papers.
Daniels, who began his career in Dallas, has spent the last three seasons with the Pacers.
Information from The Associated Press was used in this report.