C.J. Watson is close to signing an offer sheet with the Magic, according to a source close to negotiations.

Watson, who already turned down a one-year, $2.3 million deal from the 76ers, spent Monday trying to work out a three-year contract with Orlando.

Because he is a restricted free agent, Golden State would have seven days to match any offer from the Magic once it becomes official.

The Contra Costa Times believes that the recent agreement between the Magic and Matt Barnes might alter the chances of Watson going to Orlando.