Shams Charania of RealGM reports that the deal is fully guaranteed through for seasons, with no options.
Vucevic is a former first-round 2011 draft pick by the Philadelphia 76ers. The 7-footer was traded to the Magic in August 2012 as part of a four-team trade involving Dwight Howard, Andrew Bynum and others.
The 23-year-old averaged 14.2 points and 11 rebounds as Orlando's starting center last season, while shooting 50.7 percent from the floor in 57 games. He holds the Magic record for most rebounds in a single game after grabbing 29 in a December 2012 game.
Vucevic has steadily increased his free throw percentage in each of his three NBA seasons, going from 52.9 percent in his rookie year to 76.6 percent last season.
Orlando begins the regular season on Oct. 28 against the New Orleans Pelicans.
- Molly Geary