Magic officials did not disclose the overall value of the contract or whether it includes a player option or a team option, but the deal is for three seasons.
Nelson, 30, has played his entire eight-year NBA career with the Magic.
Nelson and the Magic agreed in principle to a deal on July 5 and the deal could've been signed as early as July 11, but some details had to be worked out first. In addition, Nelson and his wife just had their fourth child, which delayed Nelson from taking his physical.
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