A source told ESPN NFL Insider Adam Schefter the pick is a seventh-round selection.
Murphy made an immediate impact as Oakland's fourth-round pick in 2009, catching 75 passes for 1,130 yards and six touchdowns in his first two seasons.
But Murphy was slowed by a groin injury last season and started only one game. He had 15 catches for 241 yards and became expendable when fifth-round pick Juron Criner and undrafted free agent Rod Streater passed him in offseason workouts.
He joins a Panthers offense that grew by leaps and bounds last season with rookie quarterback Cam Newton under center. After being ranked last in the league in points and yards in 2010, Carolina jumped to fifth and seventh, respectively, under the direction of the offensive rookie of the year.
"Hate to see my bro @murph918 leave. Love you bro and good luck in your new beginning. U always a raider in my book bra.," Ford wrote of the deal on Twitter.
Information from The Associated Press contributed to this report.