The Australian guard will sign a one-year, minimum deal with the Cavaliers.
Dellavedova, 30, averaged 3.1 points and 3.2 assists per game over the course of the 2019-20 regular season for the Cavaliers, the team he's spent the most-part of his career with.
The native of Maryborough, Victoria went undrafted in 2013, but signed with the Cavaliers after a successful NBA Summer League stint with the team. He helped the team, led by LeBron James, to an NBA Championship in 2016.
Dellavedova then signed a four-year deal with the Milwaukee Bucks, with the combo guard traded back to the Cavaliers after two seasons.
The 2020-21 regular season is set to tip-off on December 22 (ET).