The Suns and the 6-foot-11 Frye agreed to a five-year, $30 million deal late Thursday, a source with knowledge of the negotiations told ESPN The Magazine's Ric Bucher.
The deal is expected to be finalized sometime after July 8.
The Suns' willingness to come up from their initial over of $25 million for five years could be an indication of their belief that they will not be able to re-sign Amare Stoudemire, giving Frye more leverage.
Phoenix had previously offered Frye a deal with a first-year salary of $3.5 million, according to a report in The Arizona Republic. However, the mid-level exception could be worth as much as $5.85 million and Drew Gooden (five years, $32M) and Darko Milicic (four years, $20M) raised the bar for power forwards when they signed earlier Thursday.
Frye made 173 3-pointers last season in his first year with Phoenix after splitting his first four seasons in the NBA between New York and Portland.
Frye was the eighth overall pick in 2005 by the Knicks.
ESPN The Magazine's Ric Bucher and ESPN.com's J.A. Adande contributed to this report.