ORLANDO, Fla. -- The signing of free-agent point guard Tyronn Lue gives the Orlando Magic the final piece of their starting lineup.

Lue, who signed Wednesday, will join NBA scoring champion Tracy McGrady in the Magic's backcourt.

He averaged 8.6 points and 3.5 assists, both career bests, as a reserve for Washington last season. Lue will get his first chance as a starter in the NBA, although the Magic expect rookie Reece Gaines to eventually take over at point guard.

"I told (Orlando coach) Doc (Rivers) that I'm ready to be the leader of the team,'' Lue said. "I can be a leader, but I need his help also because he was a point guard and I need some of his advice.''

Lue also credited past teammates Michael Jordan, Derek Harper, Brian Shaw and Ron Harper as his mentors.

The 6-footer has started 25 of 207 games in his career, and all but one start came last year with the Wizards. He has averaged 7.0 points and 2.9 assists over five seasons.

"The point guard position is easily the most important one that you've got to fill,'' Magic general manager John Gabriel said. "And in the signing of Ty, we feel we've taken a huge step forward.''

The Magic and Lue reached a verbal agreement on a two-year deal worth $3 million on Friday, but the guard entertained offers from Denver and Utah.

"I think what you saw was that we sat at the top of his list,'' Gabriel said. "We've been all along, and we also wanted to do everything we could to provide the right opportunity both contractually and playing time for this team.''

As late as Tuesday, Lue's agent said the market had shifted and the guard's price was rising beyond the Magic's offer. "His value is greater than that,'' Andy Miller said.

Orlando had tried to sweeten its offer, trying to work a sign-and-trade deal to Washington with guard Darrell Armstrong as the bait. But that fell apart when the Wizards on Monday landed Gilbert Arenas, one of the prize point guards on the market. Arenas is a restricted free agent and Golden State can still match Washington's offer, but that isn't expected.

With Lue, Gaines and second-round draft pick Keith Bogans, the Magic replaced their entire backcourt except McGrady.

Jacque Vaughn, who started 48 games at point guard for Orlando, wasn't asked back. And fan favorite Armstrong won't return, as the Magic are leery of the 35-year-old free agent's age and contract demands.

Lue was the Magic's second free-agent acquisition of the offseason. Forward Juwan Howard signed a five-year contract last week.