JULY 11TH: The Spurs have officially signed Belinelli, the team announced today in a press release.
JULY 4TH: The Spurs have reached an agreement on a two-year deal with Marco Belinelli, according to Ramona Shelburne of ESPNLosAngeles.com (via Twitter). Adrian Wojnarowski of Yahoo! Sports first reported that the two sides were engaged in serious discussions.
Belinelli, an Excel Sports client, is coming off a one-year deal with the Bulls, having averaged 9.6 PPG while shooting 35.7% on three-pointers in 2012/13. The 27-year-old signed for the bi-annual exception last summer, and will receive a slight raise this year. According to Wojnarowski (via Twitter), the two-year deal will pay Belinelli about $6MM.
Having reached agreements to bring back Tiago Splitter and Manu Ginobili, the Spurs almost certainly won't have any cap space available during the offseason, though the club should have the full $5.15MM mid-level exception at its disposal. Presumably, part of that MLE will be allocated to Belinelli, but there still should be $2MM+ left to use another player. Alternately, Belinelli could be signed using cap room if the club decides to amnesty Matt Bonner and let Gary Neal walk, but I think that scenario is probably less likely.
Still, it's unclear where the agreement with Belinelli will leave Neal. The Spurs hold the free agent guard's Bird rights, so they have the flexibility to bring him back if they so choose, but Belinelli may be in line to receive many of the minutes that otherwise would have gone to Neal.