Dedmon's agent, Mike Silverman, told ESPN the second year of the contract is a player option.
Dedmon became an unrestricted free agent after declining his $3 million player option with the San Antonio Spurs for the 2017-18 season.
The 27-year-old, 7-foot Dedmon has seen his statistics improve every year since entering the NBA on a 10-day contract with the Golden State Warriors in November 2013.
Last season, with the Spurs, Dedmon averaged 5.1 points, 6.5 rebounds and 17.5 minutes in 76 games, including 37 starts.
When Pau Gasol broke his left hand in January, Dedmon became the Spurs' starting center. In his first 11 games as a starter, he averaged 8.1 points and 10 rebounds.
However, he averaged only 3.8 points, 3.9 rebounds and 8.1 minutes in the postseason.