According to an ESPN report on Monday, Yzerman has agreed to a one-year deal with a base salary of $6 million. The deal reportedly contains incentives that could total an addition $2 million.
The Detroit News also reported that a deal was close.
Yzerman, 38, who earned $8 million in 2002-03, missed most of the first five months last season while recovering from right knee surgery. He finished with two goals and six assists in 16 games, but was awarded the Bill Masterton Memorial Trophy for qualities of perseverance, sportsmanship, and dedication to hockey following the season.
In a 20-year career spent entirely with the Red Wings, Yzerman has amassed 660 goals and 1670 points in 1,378 games.
Yzerman's deal takes on added significance with the departure of All-Star center Sergei Fedorov, who signed a multi-year deal with Anaheim on Saturday.
Notable deaths of 2014 [PHOTOS]