The Cleveland Cavaliers will acquire Channing Frye from the Orlando Magic.
The Magic also discussed a Frye deal with the Los Angeles Clippers.
Anderson Varejao will be part of the trade, ending up with the Portland Trail Blazers. The Blazers will also acquire a conditional first round pick from the Cavaliers while sending a second round pick to the Magic, according ESPN's Dave McMenamin.
Portland will waive Tim Frazier to clear a roster spot for Varejao, according to Shams Charania of The Vertical.
Jared Cunningham will also be traded by the Cavaliers to the Magic, though he will be waived.
The Magic could now have $45 million in cap space in July, according to Josh Robbins of the Orlando Sentinel.
Cleveland will save the Cavaliers more than $10 million in salary and taxes this season with the move, according to McMenamin.
Adrian Wojnarowski reports the Blazers will likely waive Varejao.
Varejao has a five percent trade kicker in his contract worth an extra $626,835, according to ESPN's Marc Stein. Dan Fegan negotiated a three-year, $30 million extension with the Cavaliers in 2014. The deal is non-guaranteed for the 17-18 season.
Frye reportedly agreed to sign with the Cavaliers in 2014 but the team ran out of cap space when LeBron James returned.