The Livonia, Mich., native said in a text message to the Free Press that he will make a "Big announcement" Thursday. The newspaper reported he will be introduced by the Red Wings as their newest acquisition at a news conference at 2:30 p.m. Friday at Joe Louis Arena.
Modano, 40, will get a one-year deal worth about $1.25 million, the newspaper said.
The Stars passed on keeping him after he produced 14 goals and 16 assists last season.
Modano, the first overall pick of the 1988 NHL draft, had spent his entire 20-year career with the Stars franchise in Dallas and Minnesota.
He has 557 goals and 802 assists in 1,459 regular season games. The goals and points total (1,359) are the most for any American-born hockey player in league history.
He also holds the record for most post-season points by a U.S.-born player with 145 (58 goals, 87 assists) in 174 games.