The 35-year-old shooting guard was slated to make $23.8 million with the Bulls in 2017-18 but reached the buyout agreement with the Bulls after one season, according to multiple reports Sunday.
Talks between the two sides about a resolution intensified ahead of Monday's start of training camp, according to ESPN. Once Wade clears waivers, he can listen to offers and decide which team is a good fit for him.
Wade gave up approximately $8 million in salary in order to obtain the buyout, ESPN's Adrian Wojnarowski reported.
Wade tweeted his thanks to Chicago and the fans on Sunday night: "A Dream was fulfilled!!! Thank you Chicago!!!"
James posted on Instagram after working out with Wade: "To say we had a great week of work would be an understatement. We both helped push each other to go outside of our comfort zones. #Itjusfeelsdifferent #Year15 #Brotherhood."
In addition to the Cavs, the San Antonio Spurs, Heat and Oklahoma City Thunder are contenders for Wade once his buyout becomes official, sources told ESPN. Wade also has a close relationship with Carmelo Anthony, who will officially become a member of the Thunder on Monday.
Wade averaged 18.3 points, 4.5 rebounds and 3.8 assists in 60 games with the Bulls last season.