Magic general manager Rob Hennigan announced the move on Monday. Lamb just completed his second NBA season, playing 53 games last season with the Magic and averaging 3.6 points in 13.1 minutes per game of action.
Lamb was original selected by Milwaukee in the second round of the 2012 draft out of Kentucky. He was acquired by Orlando, along with Tobias Harris and Beno Udrih in 2013 in a trade that sent J.J. Redick, Gustavo Ayon and Ish Smith to the Milwaukee.
Lamb has appeared in 100 career regular season games with the Bucks and Magic.