Gasol, 34, will hold a player option on the third year of the deal, sources told Yahoo Sports.
The contract details make clear Gasol's desire to be part of a winning team again, because he turned down a two-year, $22 million contract to stay with the Los Angeles Lakers, sources said.
Nikola Mirotic – considered the best player in European basketball – has reached agreement on a three-year, $17 million contract with the Chicago Bulls, league sources told Yahoo Sports.
Mirotic, a 6-foot-10 forward, was the Spanish League MVP in the 2013 season and brings a well-regarded offensive game to Chicago. He shot 46 percent from 3-point range for Real Madrid in the 2013-14 season, establishing himself as one of the finest jump-shooting power forwards in the world.
After completing his contract buyout with Real Madrid, Mirotic will be paid out of the Bulls' midlevel exception.
A native of Montenegro, Mirotic was the 23rd pick in the 2011 NBA draft.
Once the Bulls began to believe they had lost out on free agent Carmelo Anthony in recent days, they moved to make the deal for Gasol. For the Bulls, Gasol joins a frontline that includes All-Star Joakim Noah and forward Taj Gibson.
Gasol averaged 17.4 points and 9.7 rebounds for the Lakers last season. In 13 NBA seasons with the Memphis Grizzlies and Lakers, Gasol has averaged 18 points and nine rebounds.