Morris Peterson and the New Orleans Hornets agreed to terms on a 4-year contract, a person with knowledge of the deal told The Associated Press on Friday.
The person, who spoke on the condition of anonymity because the contract has not been announced, said Peterson would sign the deal following a vacation.
Peterson visited Salt Lake City earlier this week to meet with Utah Jazz officials. He also said Detroit, New Jersey, Cleveland, Miami and Toronto had expressed interest in him.
He has spent his entire seven-season career with the Raptors.
The 6-foot-7, 220-pound Peterson, who can play shooting guard or small forward, has career averages of 12 points along with nearly four rebounds, two assists and a steal.
His production and playing time fell last season -- averaging 8.9 points and 21.4 minutes -- one season after career highs in scoring (16.8), rebounding (4.6), steals (1.3) and minutes (38) a game.
Peterson produced sporadically during a first-round series against the Nets last season. He scored 17 points in Toronto's Game 5 win, then had nine points, eight rebounds, two steals and a block in Game 6 when the Raptors were eliminated.
After helping Michigan State win the 2000 national championship, Peterson was drafted 21st by the Raptors. He averaged 14 points in his second and third NBA season and 12.5 in his fourth season.
As a restricted free agent in 2004, the Hornets signed Peterson to a $15 million, three-year offer sheet and Toronto retained him by matching the deal.