[Related: Full 2013 NBA free-agent list]
The Knicks will also send two future second-round picks to Toronto, sources said.
The Knicks and Raptors were unable to finalize the deal on Sunday night with the league office because of salary components that need to be tweaked, a league source said. The teams believe they'll make the necessary adjustment for approval on Monday.
For new Raptors general manager Masai Ujiri, the deal will unload the two years, $22 million left on the contract of the underachieving 7-foot forward.
Barganani was the first pick in the 2006 NBA draft, and has averaged 15 points and nearly five rebounds a game for his career.
The New York Times first reported the teams were closing in on a deal.
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