Washington Wizards' Gilbert Arenas carries the ball against the Los Angeles Lakers during the first quarter at the Verizon Center in Washington on December 14, 2010. UPI/Kevin Dietsch Photo via Newscom

Adrian Wojnarowski of Yahoo reports:

Orlando and Washington are engaged in serious discussions for a trade that would send Gilbert Arenas to the Magic, league sources told Yahoo! Sports.

Arenas has privately told people for days that he believes a deal will soon send him to Orlando, where he’ll be reunited with Magic general manager Otis Smith, a friend and mentor from Arenas’ days with the Golden State Warriors.