Free agents can't officially sign new deals until July 11, when the NBA's moratorium ends. Teams aren't allowed to comment on new contracts until then, either, but Magic general manager Rob Hennigan said earlier this week that there was a desire to see Nelson return to the team.
Nelson has spent each of his eight NBA seasons in Orlando.
Cavs sign Waiters
The Cleveland Cavaliers signed first-round draft picks Dion Waiters and Tyler Zeller to their rookie contracts.
Financial terms of the deals were not immediately known.
The Cavs selected Waiters, a 6-foot-4 shooting guard from Syracuse and a Philadelphia native, with the No. 4 overall pick last week. The choice surprised many experts and disappointed some Cleveland fans, who had hoped the team would take Harrison Barnes or Thomas Robinson. Waiters didn't even work out for the Cavs, who did extensive background research on him before taking the Big East's top sixth man. Waiters didn't start a game in two seasons for the Orange.
Several reports Thursday said free-agent point guard Jason Kidd had reached an agreement on a contract with the New York Knicks, while a source told the Associated Press that Jeremy Lin had agreed to sign an offer sheet with the Houston Rockets.
Kidd, whom the Knicks reportedly envision as Lin's backup, had been discussing an offer to return to the Dallas Mavericks, but instead chose New York. The New York Post reported the deal was for three years.
The Rockets' offer to Lin, who had a breakthrough performance for the Knicks last season, is for four years, said a person with knowledge of the deal who spoke on condition of anonymity because the team hadn't announced the contract.
Lin can sign the offer sheet with Houston on July 11, and the Knicks will then have three days to match the offer.
The contract is worth $10.2 million over the first two seasons and $9.3 million in each of the last two years. The fourth season is a team option.
Heat make pitch to Allen
Ray Allen seems to be taking a serious look at joining the NBA champion Miami Heat.
A person familiar with the situation told the Associated Press that the free agent guard visited the Heat in Miami. Allen was planning to remain in South Florida until Friday, according to the person, who spoke on condition of anonymity because no details of the meeting were publicly revealed.
Allen has spent the last five seasons with the Boston Celtics, who have offered the NBA's three-point field-goal leader a $12 million, two-year deal. The Heat can offer Allen only the mini midlevel exception, which would pay about $3 million this coming year.
Nash: Lakers are close
Steve Nash chose the Los Angeles Lakers because they're close to his children and to NBA title contention.
The two-time MVP point guard went on ESPN radio Thursday to discuss his decision to join the Lakers, who will complete a sign-and-trade deal for the Phoenix Suns star next week.
The 38-year-old Canadian said he spoke to Kobe Bryant by phone Monday to confirm the Lakers star wants to work together. Bryant told Nash they would be a perfect fit in the Lakers' backcourt.
On the same night the Suns decided to make the trade, they reacquired Nash's former backup, Goran Dragic, and reached an agreement to sign forward Michael Beasley.
Elsewhere: Hasheem Thabeet, the No. 2 pick in the 2009 draft, has agreed to a two-year guaranteed contract with the Oklahoma City Thunder, his agent, Billy Duffy, confirmed. . . . Former Mavericks shooting guard Jason Terry has reportedly agreed to a three-year deal for $15 million with the Boston Celtics. . . . The Indiana Pacers signed Duke forward Miles Plumlee, their No. 1 draft pick. Terms were not released.