The 37-year-old agreed to a 3-year, $12.2 million deal.
Carter averaged 11.9 points in 81 games, all off the bench, last season for the Dallas Mavericks. Over his 16-year career which includes stops in Toronto, New Jersey, Orlando, Phoenix, and finally in the Metroplex.
He turned down the Mavericks cap room exception offer which would have netted Carter $2.7 million per year. This is the most Dallas could offer the veteran as they await the outcome of the offer sheet extended to Houston Rockets forward Chandler Parsons.
Carter moved into 25th place on the NBA's career scoring list last season, and also is now seventh all-time in 3-pointers made. He led the league last season with 146 off the bench.