The first two seasons of the contract are guaranteed while the third year is a team option.
The Trail Blazers later confirmed the signing.
Miller will give the Trail Blazers a veteran point guard to help steady their young roster.
"He’s got great savvy and leadership," GM Kevin Pritchard said from Team USA's practice on Friday. "We like him as a player for sure."
The Blazers had struck out in their first two attempts to sign free agents this summer. Hedo Turkoglu(notes) was close to signing with them after visiting Portland only to have a last-minute change of heart and take a five-year, $53 million deal with the Toronto Raptors. The Blazers then signed restricted free-agent forward Paul Millsap(notes) to an offer sheet that the Utah Jazz matched.
Miller gives the Blazers an experienced playmaker as they seek to improve upon last season's success, which ended with a loss to the Houston Rockets in the first round of the playoffs.
"He’s one of those player-coaches on the floor," Blazers center Greg Oden said. "He can just control the entire game. With what we got, he’s going to be good."