Free-agent point guard Jameer Nelson will sign a contract with the Dallas Mavericks, league sources told Yahoo Sports.

The Mavericks will use their $2.7 million exception to sign Nelson, a source said. The Orlando Magic waived Nelson on June 30 after he spent 10 seasons with the franchise. He averaged 12.1 points, 7.0 assists and 3.4 rebounds last season.

Nelson is expected to compete with fellow veterans Raymond Felton and Devin Harris for the starting point guard spot.

Felton is expected to receive a fine and possible suspension by the NBA after he pleaded guilty Wednesday to attempted criminal possession of a weapon and criminal possession of a firearm. He will not receive jail time under the deal.

ESPN.com first reported the Mavericks were finalizing a contract with Nelson.

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