The deal is for four years and $40 million, sources told ESPN.com. The final year of the deal is a player option, a source told ESPN.com's Jeff Goodman.
Shumpert became a valuable piece for the Cavs after arriving in a January trade with the New York Knicks. During the playoffs, he averaged 9.1 points, 4.9 rebounds and 1.3 steals per game.
Shumpert has established himself as a replacement-level producer with a plus defensive ability and with the versatility to play -- and guard -- three positions. As a supporting player, his inconsistent long-range shooting is a handicap, but he's a solid secondary playmaker. On defense, Shumpert has the ability to guard the top perimeter scorer on most opponents, and he's well above average for his position as a rebounder.
Combined with a deal struck with Kevin Love and another deal the team is expected to close with Tristan Thompson, the Shumpert contract means the Cavs are approaching $240 million in new salary commitments on just the first day of free agency.
That does not include LeBron James, who is expected to re-sign to a contract starting at $22 million.
Information from ESPN.com's Bradford Doolittle was used in this report.