The one-year deal is worth $1.5 million. Cleveland.com was first to report the agreement.
Felton averaged 9.5 points and 3.6 assists last season with the Mavericks. He’s a career 41.2 percent shooter, 32.7 percent on three-pointers.
Felton, who has averaged 12.4 points and 6.0 assists over 11 seasons, will back up Chris Paul at point guard.