Arroyo replaced John Stockton
The Bucks and L.A. Lakers also had been negotiating with Arroyo, who started 71 games for the Jazz last season, averaging 12.6 points and 5.0 assists.
The Jazz already have agreed to terms with Detroit Pistons restricted free agent center Mehmet Okur on a six-year, $50 million offer sheet, which the Pistons are not expected to match. Utah agreed to terms with guard Gordan Giricek earlier in the week. And the Jazz had a solid draft, taking guard Kirk Snyder and forward Kris Humphries in the first round.
Arroyo, who replaced all-time assists and steals leader John Stockton in the Jazz lineup last season, is only the franchise's fourth point guard since 1981.
None of the agreements can be signed formalized before next Wednesday, when the summer signing period opens.
Kevin O'Connor, Jazz vice president for basketball operations, said Arroyo was in the league for two years before last season, but didn't play much those two years.
"We thought he did a terrific job for us last year -- or else we wouldn't be re-signing him," O'Connor told the Deseret Morning News.
Information from The Associated Press was used in this report.
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