The Lakers and Hill have significant mutual interest in pursuing a deal that would allow Hill and No. 2 overall pick Lonzo Ball to play together, league sources told ESPN.
The Lakers announced Monday that Ball had signed his rookie contract.
Hill, 31, is a victim of a shrinking point guard market and could potentially parlay a healthy season with the Lakers into a longer-term deal elsewhere next summer. Hill had a problematic toe injury that limited his durability during an otherwise stellar season for the Utah Jazz. He played just 49 games, but averaged a career-high 16.9 points per game.
The Lakers are determined to do one-year contracts in free agency, preserving salary-cap space for 2018 to pursue possible free agents Paul George, LeBron James and Russell Westbrook. Before joining the Jazz in a trade last year, Hill spent five seasons as George's teammate with the Indiana Pacers.
The Lakers have also talked with free-agent point guard Rajon Rondo about a one-year deal, including several rounds of calls to front-office officials, coaches and players who've worked with Rondo through the years, league sources said.