Two persons with knowledge of the negotiations confirmed a Yahoo Sports report on the deal. They requested anonymity because the agreement comes during the league's free-agency moratorium, which ends Thursday.
The agreement means the Pistons have locked up their point guard of the future, the Free Press said.
Jackson averaged 17.6 points, 9.2 assists and 4.7 rebounds for the Pistons after arriving from the Oklahoma City Thunder in a February trade. Detroit acquired Jackson after Brandon Jennings suffered a season-ending Achilles' tendon injury.
The Thunder drafted the 6-foot-3 Jackson, who played at Boston College, in the first round in 2011.
Stuckey will stay with the Pacers
The Indiana Pacers and free-agent guard Rodney Stuckey have agreed on a three-year contract worth $21 million, the Indianapolis Star said, quoting Stuckey's agent.
The deal that keeps Stuckey with the Pacers includes a player option for the third year, agent Paolo Zamorano said.
By trading center Roy Hibbert to the Lakers, Indiana created cap space to re-sign Stuckey, who averaged 12.6 points, 3.1 assists and 3.5 rebounds for the Pacers last season. Though he started in 36 of the 71 games in which he appeared, the Star said he found his niche as a high-scoring sixth man.
The combination guard spent his first seven NBA seasons with the Detroit Pistons, who drafted him in the first round in 2007 out of Eastern Washington.
Raptors, Joseph agree on terms
Joseph had been serving the San Antonio Spurs as a backup to Tony Parker.
The Spurs earlier pulled a qualifying offer to Joseph, making him an unrestricted free agent. That was in order to free cap space to sign LaMarcus Aldridge, ESPN said.
Joseph, who was born in Toronto, averaged 6.8 points, 2.4 assists and 2.4 rebounds last season. He played as a collegian at Texas and was drafted in the first round by the Spurs in 2011.