The person asked for anonymity because the deals can't be signed until next week. The agreement can rise to $34 million with incentives.
The move capped an extremely busy night for Phoenix. Earlier, they agreed to a sign-and-trade deal to send Steve Nash to the Los Angeles Lakers and, according to a source close to the talks, reached agreement on a three-year, $18 million contract with free agent forward Michael Beasley.
Dragic was Nash's backup in Phoenix before being traded to Houston.