Stackhouse is expected to sign sometime in the coming days, a person with knowledge of the deal told The Associated Press. The person spoke on the condition of anonymity because the contract hasn't been finalized pending a physical.
The deal was earlier reported by ESPN.com and the Milwaukee Journal-Sentinel.
The Bucks are in need of a scoring threat after guard Michael Redd tore ligaments in his left knee last Sunday and will miss the rest of the year.
Stackhouse, a 14-year veteran, was part of a four-team, eight-player trade in the offseason and became an unrestricted free agent this summer, when the Memphis Grizzlies bought out his contract for $2 million.
RAPTORS: Guard Marco Belinelli did not attend Sunday's game against the Mavericks because of flulike symptoms. He also sat out Friday's win at New York.
The third-year man out of Italy is averaging eight points a game for the Raptors, who currently hold the sixth spot in the Eastern Conference.
Toronto is hopeful it will have Belinelli back for its big intra-conference showdown with the East-leading Cleveland Cavaliers on Tuesday night. It will be the first of four matchups between the potential playoff teams this season.
The Raptors have won four of their last six games.