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Report: Terry signs with Celtics

The Boston Celtics have reached agreement with Dallas Mavericks free-agent guard Jason Terry on a three-year contract worth $15.6 million, Yahoo! Sports reported Tuesday.

The Celtics will use their $5 million mid-level exception to sign Terry.

Terry, 34, spoke with Celtics president Danny Ainge and coach Doc Rivers on the first day of free agency Sunday.

The Celtics have already reached agreement with Kevin Garnett on a three-year, $34 million contract, and they have said they hope to re-sign Ray Allen despite the addition of Terry.

Terry averaged 15.1 points and 3.6 assists for Dallas last season, but he was disappointed about not being signed to a contract extension after the Mavericks' 2011 NBA championship.

Terry is giving Dallas a chance to match the offer, but multiple media outlets have said the Mavericks are unlikely to do so.

It leaves the Mavericks without Terry and Deron Williams, who earlier Tuesday agreed to sign with the Nets instead of Dallas.