Ramona Shelburne, Amin Elhassan and Brian Windhorst react to Jeff Teague signing with the Timberwolves and how it improves their playoff chances now with Jimmy Butler aboard as well. (1:20)

Point guard Jeff Teague has agreed to a three-year, $57 million deal with the Minnesota Timberwolves, sources said.

The agreement, which contains a player option for the third year, was struck as NBA free agency opened Saturday at 12:01 a.m. ET.

It came just hours after the Timberwolves traded point guard Ricky Rubio to the Utah Jazz for a protected 2018 first-round pick via the Oklahoma City Thunder.

That freed up cap space for Minnesota to be aggressive in free agency, and Teague was a target.

The 29-year-old averaged 15.3 points and 7.8 assists in 82 games in 2016-17 for the Indiana Pacers, his first year in his hometown of Indianapolis after seven seasons with the Atlanta Hawks.

Teague's steady play helped push the Pacers into the Eastern Conference playoffs, with Indiana ultimately getting swept by the Cleveland Cavaliers in the first round.

He was acquired before last summer's draft in a three-team deal that sent George Hill to the Jazz and the 12th pick in the draft to the Hawks.

Teague has missed just 17 games over the past four seasons.

He was ranked No. 10 on the list of top available free agents this offseason compiled by ESPN's Kevin Pelton.

ESPN's Ohm Youngmisuk contributed to this report.