It will be a two-year deal worth $12.1M with a player option for the second season, according to his agents, Raymond Brothers and Sam Permut (Twitter link). Utah will use its taxpayer mid-level exception, adds John Hollinger of The Athletic (Twitter link).
Gay, who will turn 35 this month, spent the last four seasons with the Spurs, where he was a reliable contributor off the bench for Gregg Popovich. He averaged 11.4 points and 4.8 rebounds in 63 games last season, which was his 15th in the NBA.
Gay will join Utah’s big man rotation in place of Derrick Favors, who was traded to the Thunder last week. He also reunites with re-signed point guard Mike Conley, a former teammate with the Grizzlies.