Wagner agreed to a two-year, $22 million deal with the Magic on Tuesday, Adrian Wojnarowski of ESPN reports.
The Magic declined Wagner's team option on Saturday, but the sides agreed on a new deal to bring him back for two more seasons. The 27-year-old averaged a career-high 10.9 points, 4.3 rebounds, 1.2 assists and 0.5 steals across 17.7 minutes last year over 80 regular-season games. Moreover, Wagner shot a career-high 60.1 percent from the field.