McDaniels was a restricted free agent with the Brooklyn Nets, holding a team option. He played in 20 games for the team after being acquired at the trade deadline from the Houston Rockets in exchange for cash considerations.
The 24-year-old averaged 6.3 points and 2.6 rebounds in 14.7 minutes per game with Brooklyn. He has career averages of 5.3 points and 2.2 rebounds in 14.1 minutes.
ESPN's Adrian Wojnarowski and Ohm Youngmisuk contributed to this report.