Stackhouse provided the terms after general manager Billy King announced the deal.
Stackhouse appeared in 30 games with the Hawks last season, averaging 3.6 points and 9.1 minutes. The 17-year NBA veteran did not appear in any of Atlanta's six playoff games.
Selected third overall by Philadelphia in 1995, the North Carolina product has career averages of 17.4 points, 3.3 rebounds and 3.4 assists in 31.8 minutes.
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