The deal is expected to be finalized Sunday after Alualu passes a physical.
NFL.com reported the deal being worth $6 million, including $4.25 million guaranteed.
The 10th overall pick in 2010, the 27-year-old Alualu played out a five-year contract worth nearly $22 million.
Alualu hasn't missed a game in five years. He has 314 tackles, 13 sacks and a fumble recovery.
The former Cal standout was a starter for four years before making the transition into backup last season. He played well behind starter Red Bryant, finishing with 30 tackles and two sacks.