James will sign a two-way contract with the Pelicans, Shams Charania of Yahoo Sports reports.

James spent time with the Suns earlier this season but was waived in December when the team brought in veteran Isaiah Canaan. Given that he still has two-way-eligible days remaining, James will likely remain with the Pelicans through the All-Star break, but the team will then have to make a decision on his future. In 32 games for Phoenix, James compiled averages of 10.4 points, 3.8 assists and 2.8 rebonds per game.

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