In the deal, which has been rumored since late May, the Magic would send veteran swingman Arron Afflalo to the Clippers in exchange for point guard Eric Bledsoe and veteran swingman Caron Butler.
Orlando would gain, in Bledsoe, a young and athletic point guard. In his three-year career, the former Kentucky Wildcat owns averages of 6.7 points, 2.6 boards, three assists, and 1.2 steals in 19.6 minutes.
Swapping Afflalo for Butler's expiring contract would yield cap savings and could create another opportunity to flip the Connecticut product at the trading deadline.
The rumored trade would bolster the Clippers' wing rotation and address their need for a competent corner three-point shooter.
Chris Mannix of Sports Illustrated reported on Wednesday that L.A. had decided to keep Bledsoe for the time being, hoping for a better offer than Orlando's.