The second year on the deal is non-guaranteed, according to a source.
Hood, 28, declined his $6 million player option with the Blazers to become a free agent earlier this week.
Hood tore his left Achilles tendon in December 2019 but with nearly a year of recovery time, he can play right away for Portland.
The injury cut short a promising season in which Hood was averaging 11 points per game and shooting nearly 50% from 3-point range in 21 games for the Blazers.
A trade-deadline acquisition two seasons ago, Hood averaged 9.9 points and shot 35.5% from 3 during Portland’s run to the 2019 Western Conference finals. He re-signed with the team on a two-year, $16 million deal with a player option.