The Pacers have seven days to match the offer, which they expect to receive Sunday or Monday. Given the Pacers financial situation, it's unlikely they will match the offer, a source close to the process told ESPN.com.
Jack averaged a career-high 13.1 points, 3.4 rebounds and 4.1 assists for the Pacers last season. He started the final month of the season.
Jack would probably back up Jose Calderon at point guard in Toronto.
Marc Stein and Chad Ford contributed to this report.