Schwartzman said both teams would prefer that the sign-and-trade works out, but the Celtics will use the biannual exception to sign Daniels if trade talks fizzle. Schwartzman wouldn't say which other players would be involved in a deal.

Yahoo! Sports first reported that Daniels would join the Celtics.

Daniels averaged a career-high 13.6 points last season, but Indiana chose not to pick up its $7.3 million team option on him last month. The Pacers said they only comment on official deals.