MIAMI (AP) — A person familiar with the negotiations says Andre Iguodala is headed to Miami after the Heat and Memphis Grizzlies agreed Wednesday night on his long-awaited trade.

As part of the deal, Iguodala agreed to a two-year extension, with the second of those years being a team option, according to the person who spoke to The Associated Press on condition of anonymity because the trade has not been finalized.

The person also said Miami and Memphis were still working out complete terms of what the Heat are giving up in the deal, and that a third team may still be involved.

Holding the team option for 2021-22 is a critical component for Miami, which intends to have space for two max contracts in the summer of 2021 and made clear to all teams in recent days — and even last summer — that it would not compromise those plans.

Iguodala was the 2015 NBA Finals MVP for Golden State and was traded to Memphis last summer. He did not play for the Grizzlies, after he and the team agreed that it would be best if he was sent elsewhere. It took several months, but Miami became that destination.

The Heat went into the trade deadline prioritizing perimeter defensive help, which made Iguodala a perfect fit. It was not immediately clear when he would join the Heat, which was starting a five-game trip in Los Angeles against the Clippers on Wednesday.

Heat coach Erik Spoelstra declined to discuss the deal when speaking with reporters in Los Angeles.

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