Bosh, 33, hasn't played since February 2016 because of blood clot issues. He has remained on the Heat roster as the sides have worked through complex medical and legal issues in this delicate and unique situation.
The agreement hasn't been finalized as Bosh and his family, agents and lawyers are still reviewing documents.
Both the South Florida Sun-Sentinel and the Miami Herald reported that the sides were in talks Tuesday. It's a process that has played out since last fall, when Heat team doctors declined to clear Bosh to take part in training camp following blood test results.
Bosh is guaranteed $52 million over the next two seasons, though a significant portion of that is covered by insurance. But he has remained on the Heat's salary cap, limiting their ability to replace him. This agreement is expected to remove Bosh from the cap and allow the Heat to move on with their team.
The Heat will end up with between $14 million and $37 million in cap room, depending on player options, team options and waivers decisions.
Part of the reason this process has been so drawn out is the sides are caught between two collective bargaining agreements with differing rules on players with potentially life-threatening medical conditions. The new CBA, which takes effect July 1, has new policies for evaluating player health, partially because of Bosh's situation.
Bosh has said in several interviews that he still hopes to find a treatment plan that would allow him to return to the floor in the future. Under the current rules, if he were to return and play more than 25 games for another team, his salary cap hit would return to the Heat's books and they would potentially face luxury tax penalties.
Working that out was part of the motivation from the Heat's side during the discussions.
Under the new CBA, a panel of doctors selected by the league and the association would determine whether a player with a potentially life-threatening medical condition would be cleared to play.