Parker, 26, has averaged 9.4 points and 2.9 assists per game during his career and is one of four players with 110 steals and 110 3-pointers during the past two seasons. The deal is believed to be worth between $4.5 million and $5 million over two years.

Parker, who is 6 feet 4 and 180 pounds, started the past two seasons but was replaced by Jordan Farmar for the playoffs. With the Heat, Parker will likely back up Jason Williams and replace Gary Payton.

"We feel very good about acquiring Smush as he brings size, shooting and defense to our backcourt," Heat coach Pat Riley said in a statement. "He has been improving every year and we feel that this could be his best year yet."

The Fordham product started his career in Cleveland and played in Detroit and Phoenix. He has also played in Greece and the CBA.

Parker's $2.5 million annual salary is a split of the $5.36 million mid-level exception. Remaining is the rest of the mid-level and $1.8 million left for the biannual exception. The two cannot be aggregated, leaving no player to be signed for more than about $2.8 million. Above that, any acquisition would be through a sign-and-trade.

One Heat target, Warriors swingman Mickael Pietrus, is looking less likely.

"He's not going to take half the mid-level," said Pietrus' agent, Happy Walters . Pietrus' qualifying offer from the Warriors is $3.5 million, above what the Heat can offer .

Walters did, however, add that Pietrus would rather play for the Heat. Pietrus' arrival in South Florida would have to be through a sign-and-trade, possibly with unrestricted free agent James Posey.

The Heat's offseason has been marred by failures. Mo Williams turned down an offer in favor of staying in Milwaukee and Steve Francis signed with Houston.