The San Antonio Spurs are sending guard Devonte' Graham and a second-round pick to the Charlotte Hornets, sources told ESPN's Adrian Wojnarowski on Saturday afternoon.

The Hornets will waive Graham, 29, and allow him to become a free agent, sources said.

According to ESPN's Bobby Marks, the Spurs will be approximately $26 million below the salary cap before the execution of the Chris Paul contract signing.

Graham was set to enter the final year of a four-year contract he originally signed with the Hornets in 2021 in a sign-and-trade deal with the New Orleans Pelicans. He was set to make $12.65 million in 2024-25, but only $2.85 million of that deal was guaranteed.

The original guarantee date for the deal was July 1, but sources told ESPN last week that the date was pushed back to July 8.

As the Spurs focused on playing younger players, Graham saw the court sparingly last season for San Antonio, appearing in only in 23 games. He averaged 5.0 points and 2.1 assists in the games he was on the court and averaged 8.1 points and 3.5 assists in the final eight games of the season -- when he averaged 23.6 minutes.