Harris and the Magic failed to finalize an extension by the Oct. 31 deadline last season, making him a restricted free agent this summer. Orlando would have had the right to match any offer sheet Harris signed with another team.
Last season, Harris averaged 17.1 points and 6.3 rebounds in 34.8 minutes per game. He also hit 36.1 percent of his 3-point attempts -- an increase of 11 percent from the previous season.
Along the way, the 22-year-old, a first-round draft pick in 2011 out of Tennessee, established himself as one of the top young small forwards in the NBA.
ESPNNewYork.com's Ian Begley contributed to this report.