League sources told ESPN and Yahoo Sports that the Spurs agreed to trade Leonard and Danny Green to the Raptors in exchange for All-Star DeMar DeRozan, Jakob Poeltl and a protected first round pick in the 2019 NBA Draft.
NBA teams and the league office are expected to have a trade call soon regarding the move.
"Be told one thing & the outcome another," DeRozan wrote Wednesday on his Instagram. "Can't trust em. Ain't no loyalty in this game. Sell you out quick for a little bit of nothing ... Soon you'll understand ... Don't disturb ..."
League sources told ESPN that Leonard has "no desire" to play in Toronto.
Leonard, 27, averaged 16.2 points, 4.7 rebounds, 2.3 assists and 2.0 steals and 1.0 blocks per game in nine games during the 2017-18 season, while hampered by injuries. The two-time All-Star and All-NBA selection averaged a career-high 25.5 points, 5.8 rebounds and 3.5 assits per game during the 2016-17 season.
He has a $21.3 million player option for the 2019-20 season and will make more than $20 million in 2018. Sources told Yahoo Sports and ESPN that the Spurs star wanted to land with the Los Angeles Lakers.
He can still choose to play for the Lakers following the 2018 season if he opts out of the final year of his contract or is signed and traded to the Western Conference franchise.
DeRozan has three years and $83 million left on his contract. His deal includes an option for early termination for the 2020-21 campaign.