The Heat are close to signing three-point specialist James Jones to a free-agent contract, according to a report in The South Florida Sun-Sentinel.

Pat Riley is prepared to give Jones a five-year deal starting at $4 million for next season. The final three years of the contract would be conditional to protect the Heat for the 2010 free-agency period.

Miami is expected to use the remainder of their salary cap exception money to sign second-round pick Mario Chalmers.