The Bobcats, in need of a big man, reached the $17 million deal Tuesday. The deal gave the Cavaliers a week to match it or lose him.

The decision by Cleveland today came the morning after the Cavaliers lost their fourth straight game. They are 0-3 without LeBron James, who sprained his left index finger a week ago.

Varejao, known for his energy and defense, averaged a career-best 6.8 points and 6.7 rebounds last season in helping the Cavaliers reach the NBA finals for the first time.

Varejao could opt out of the deal after the second season and become an unrestricted free agent. Varejao said last week he would prefer to play for another team.

Before training camp, Varejao turned down Cleveland's one-year, $1.2 million qualifying offer. If he had signed that deal, the former second-round pick could have become an unrestricted free agent after this season. In late October, the Cavaliers rejected a six-year, $52 million package presented by Varejao's agent, Dan Fegan.

Before joining the Cavaliers in the 2004-05 season, Varejao spent three seasons in Spain playing for F.C. Barcelona. He's also a member of the Brazilian national team, and the Bobcats said he could play for the team in the offseason, a point of contention with the Cavaliers.