The Cleveland newspaper said the Cavaliers had guaranteed Bynum $6 million for the first year of the deal.
Bynum spent the first seven years of his career with the Los Angeles Lakers before being traded to Philadelphia prior to the 2012-13 season. He never played for the 76ers, however, due to knee problems that led to arthroscopic surgery in March.
As a free agent, Bynum talked to both the Atlanta Hawks and Dallas Mavericks before signing with the Cavaliers.
Bynum was the 10th overall pick in the 2005 draft and has played an entire season just once.