The former Denver Nuggets center averaged 7.2 points and 5.2 rebounds during the 2019-20 season.
Detroit also agreed to a two-year deal with Jahlil Okafor, his agent, Sean Kennedy, told Wojnarowski. The No. 3 pick in the 2015 NBA draft, Okafor averaged 8.1 points and 4.2 rebounds in limited minutes for the New Orleans Pelicans last season.
Jerami Grant is also headed to Detroit on a three-year, $60 million deal, representative Mike Kneisley of The Neustadt Group said. Grant is coming off a season where he averaged 12.0 points for Denver.
Meanwhile, the Pistons are also finalizing a deal to acquire free-agent forward Josh Jackson, sources told Wojnarowski.
The 6-foot-11 Plumlee posted a thank-you letter to Denver fans on his Twitter account Friday, saying he "has no doubt" that big things await the Nuggets. He also said he's excited to join the Pistons, calling them "one of the league's most storied franchises."
After an aggressive approach in the draft, new Pistons general manager Troy Weaver vowed to work hard to restore the franchise.
"We're going to attack free agency. We're going to attack everything," Weaver said on draft night. "I said coming in this was going to be a restoring the two iterations of the great Pistons teams. That was their mentality. They were aggressive, they were on the attack, and we want to follow suit. So that's the mantra. We'll hopefully continue to be aggressive, but we wanted to set the tone."
Detroit drafted Killian Hayes at No. 7 and made trades to land a host of other players.
A three-team deal helped the Pistons land Saddiq Bey at No. 19 and Jaylen Hands at No. 56 while sending Luke Kennard, Justin Patton and four second-round picks to the Clippers. The Brooklyn Nets got Landry Shamet.
The Associated Press contributed to this report.