Wallace will receive a $1.3 million, one-year deal, said the person, who spoke on the condition of anonymity because the contract has not been signed. Wallace is expected to do that early next week.
The four-time defensive player of the year helped the Pistons win the 2004 NBA title. He left as a free agent to play for the Chicago Bulls, signing a four-year, $60 million deal.
He was traded to the Cleveland Cavaliers and most recently to the Phoenix Suns as part of the Shaquille O'Neal trade. Wallace was due $14 million for the last year of his deal but gave up $4 million to become a free agent.
Wallace was considering retirement as recently as May after the Cavs were ousted from the playoffs by Orlando. He cited a combination of injuries, declining production and a loss of passion for the game.
The 14-year veteran suffered a broken leg last season and suffered from tendinitis in his knees.
At his best, Wallace is one of the best defensive players in the NBA, a fierce rebounder despite his small size for a center (6-foot-9, 240 pounds). He has never averaged more than 9.7 points per game in any season, but is valued more for his work on the boards (10.3 rebounds and 2.1 blocks per game over his career).
Wallace will be a familiar face for a team in the midst of big changes. He will recognize former Cavaliers assistant John Kuester, who last month became Detroit's sixth head coach in the past 10 years.
Kuester replaced Michael Curry, who was fired on June 30 after going 39-43 in his first season and being swept by Cleveland in the first round of the playoffs. Detroit had reached the Eastern Conference finals in the previous six seasons under Rick Carlisle, Larry Brown and Flip Saunders.
Detroit has almost completely dumped that roster, with only Richard Hamilton and Tayshaun Prince remaining from the 2003-04 championship team. They added Charlie Villanueva and Ben Gordon in the first hours of free agency, and now they are bringing back another cog from their championship run.
