3:45pm: The Spurs have officially signed McGrady, the team announced in a press release.
3:25pm: The Spurs will sign Tracy McGrady for the remainder of the regular season, reports Adrian Wojnarowski of Yahoo! Sports (via Twitter). Because McGrady hasn't played for an NBA team this season, he'll be playoff-eligible for the Spurs.
McGrady, 33, spent most of the 2012/13 season with China's Qingdao Double Star Eagles, averaging 25.0 PPG and 7.2 RPG in 29 games in the CBA. Despite his solid scoring totals overseas, one executive told Ian Thomsen of SI.com last month that he'd be "shocked" if McGrady signed with an NBA team this season. Zach Lowe of Grantland.com tweets that the move is one of the most "out-of-nowhere" end-of-season signings he can recall.
The agreement with McGrady comes on the heels of another surprising transaction by the Spurs, as the team waived Stephen Jackson on Friday. Jackson's release left the club with just 14 players, so a corresponding roster move won't be necessary to clear room for T-Mac.
McGrady was actually reasonably effective for a bench player in his last NBA action. He spent 2011/12 with the Hawks, putting up 5.3 PPG and a 13.6 PER in 52 contests (16.1 MPG).