That's what an unnamed "league source" has told Y!'s Adrian Wojnarowski, who's been killing it this offseason with the scoops. Apparently it's a two-year deal for the MLE that likely includes a partial guarantee for a third season. (Update: Woj just said on Twitter that the total guaranteed value is $15 million.)
For reference, the Pistons are unable to offer the MLE since they have cap space, and they're unable to go over the cap to keep McDyess since they lost his Bird Rights when they included him in the Billups/Iverson swap.
Update: Here's my ode to McDyess on FanHouse.