The move will save the Bucks almost $20 million in salary next season, Wojnarowski added.
ESPN's Adrian Wojnarowski reports the Bucks are sending a package of Dellavedova, John Henson and first (protected) and second round draft picks in 2021 to the Cavs in exchange for George Hill and Sam Dekker - pending league approval.
Brian Windhorst explained it as a strategic move by the Cavaliers to take on money because they want to acquire draft picks.
The deal potentially could save the Bucks about $19 million next season if they don't keep Hill, who has only $1 million of a $19 million deal guaranteed.
Australian guard Dellavedova was a 2015-16 champion with the Cavaliers after signing as an undrafted free agent in 2013, and returns to the squad after two full seasons with the Bucks.
The Bucks are getting a 46-percent shooter from 3-point range in Hill, who fits into their new long-range shooting philosophy under first-year coach Mike Budenholzer, plus a backup to starter Eric Bledsoe. "George provides us added depth and experience at the guard position, while Jason gives us another frontcourt player who can stretch the floor". "We wish Jason the best moving forward and appreciate the value he brought to our team as a great teammate and true professional".
He is averaging 6.7 points and 1.9 assists this year in 11 games, but has not played since November 19 against the Pistons.
There was an urgency to get the deal agreed to before 6 p.m. on Friday because only players on rosters by then can be re-packaged in other trades before February's deadline. The 32-year-old is averaging 12.8 points, 2.8 assists and 2.1 rebounds per game in 26.5 minutes this season.
After the departure of LeBron James in the summer, the Cavaliers are officially in asset-acquisition mode and will be looking to re-stock their draft capital.
Hill was highly expected to be traded from the Cavs after it was clear that the team was heading towards the direction of a rebuild.