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ESPN's Chad Ford got the story from Pavlovic's agent, Marc Cornstein:

The two sides had been at a standstill for much of the summer. Cornstein said that there was little movement until the last few days when Cleveland began to put a more serious offer on the table.

"Cleveland made great strides in the last few days to show how much they truly value Sasha and to ensure that we closed on this deal for the start of the season," Cornstein said.

Without knowing the numbers, it's tough to really know who blinked. But it seems likely that Pavlovic will be in town in the next day or so, and Cornstein says he is in excellent shape.

Now the pressure's on Cleveland's other holdout, Anderson Varejao.

UPDATE: The Akron Beacon-Journal's Brian Windhorst has also learned of the deal from Cornstein, and adds:

In talking to some sources with the Cavs, I have gleaned that it is probably a three-year contract worth between $4-$5 million per season. More on that later.

While the two sides were still pretty far apart before the weekend, apparently both gave a little bit to get the deal done. Sasha is still going to have to pass a physical and actually sign the deal, so he wouldn't probably be available until at least Friday when the New York Knicks come to town.