Davis, 36, had officially committed to launching a comeback attempt after signing a contract last month to play in the NBA Development League.
By putting his name into the D-League player pool, he committed himself to joining whichever team claimed him in the 19-team league, which pays a maximum salary of just $25,000.
"Our organizational efforts continue to center on finding, developing, and providing opportunity to talented professionals," 87ers general manager Brandon D. Williams said in a statement. "Baron still has much to contribute to the game, and we are excited to play a role as he transitions through the next phase of his successful career."
A two-time All-Star, Davis last played for the New York Knicks in the 2011-12 season before suffering a knee tear during the playoffs.
He was the No. 3 overall selection in the 1999 NBA draft by the Charlotte Hornets and averaged 16.1 points and 7.2 assists in 835 career games.
The 87ers will hold no special privileges in terms of Davis' NBA rights. He would be eligible to be called up on a 10-day contract by any NBA team.
Davis is expected to make his debut with Delaware on Friday.
Information from The Associated Press was used in this report.