The Suns reached an agreement with the free agent on a four-year, $30 million contract that can rise to $34 million with incentives, according to a person with knowledge of the situation who requested anonymity because deals can't be signed until next week. The person said the fourth year is a player option.
The move capped an extremely busy Wednesday night for Phoenix. Earlier, they agreed to a sign-and-trade deal to send Nash to the Los Angeles Lakers and, according to a person close to the talks, reached an 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 in February 2011, along with a lottery-protected first-round draft pick for point guard Aaron Brooks.
Several teams had been courting Dragic, who drew increased interest when he moved in as starter for the Rockets after Kyle Lowry was sidelined with a bacterial infection. Dragic was named Western Conference player of the week on April 8 after compiling 62 points and 25 assists in wins over Chicago, the Lakers and Sacramento.
Dragic has averaged 11.7 points and 5.3 assists in 28 minutes per game in his career, mostly as a backup.
The Slovenian was drafted in the second round in 2008, the 45th pick overall, by San Antonio, then his draft rights were traded to the Suns.
His most famous day with Phoenix came on May 7, 2010, during Game 3 of the Western Conference finals at San Antonio, when he scored 23 of his 26 points in the fourth quarter, including 5 of 5 3-pointers, in a 110-96 victory.
But his play tailed off the following season and the Suns made a trade deadline decision that Brooks was the better option. Brooks played in China last season but remains a Suns restricted free agent.
The contract agreement first was reported by ESPN.com.Suggest a correction