ESPN.com reported the Cavs came to terms with Korver on a three-year, $22 million contract.
The 36-year-old Korver joined the Cavaliers after a trade with the Atlanta Hawks during the middle of last season but never gave the team the offensive boost off the bench it sought, particularly in the postseason.
In 35 regular-season games, Korver averaged 10.7 points and shot 49 percent on 3-pointers. In the playoffs, those numbers fell off to 5.8 points per game and 39 percent from 3-point range.
Signing Korver will add to the Cavaliers' luxury tax bill. According to ESPN.com, the third year of Korver's contract is only partially guaranteed per the new collective bargaining rules.