Free-agent forward Chase Budinger has reached agreement on a three-year, $16 million contract to return to the Minnesota Timberwolves, league sources told Yahoo! Sports.

Budinger, a 6-foot-7 forward, returns to a strong core with the Wolves that includes Kevin Love and Ricky Rubio.

The third year of the deal will be a player option, a source said.

Budinger's agent, Kevin Bradbury of BDA Sports, had been negotiating offers between the two most aggressive suitors, Minnesota and Milwaukee, over the past two days.