The verbal agreement can be made official on July 7, when the league moratorium on contract signings is lifted. Yahoo Sports reported the three-year deal was worth $36 million with a fourth-year player option.
Lin took the NBA by storm during a 2012 stint with the Knicks dubbed by the media as "Linsanity" but has bounced around the league and most recently played for the Charlotte Hornets. He opted out of the second year of his contract.
Lin averaged 11.7 points, 3.0 assists and 3.2 rebounds for the Hornets last season. The 28-year-old signed a two-year, $4.3 million deal with Charlotte last summer. Lin previously signed a three-year, $25 million deal with the Houston Rockets as a restricted free agent with the Knicks.
Lin said at the end of the season that he would be "very interested" in returning to the Hornets but wanted to seek a long-term deal and explore the open market.
The Nets waived 34-year-old point guard Jarrett Jack on Thursday.