The person spoke on the condition of anonymity because the contract terms have not been announced, and the Sabres have not yet confirmed a deal was reached.
The move comes a day before Ehrhoff was eligible from becoming a free agent. And it comes a day after the Sabres gambled that they could sign the seven-year veteran by acquiring his rights in a trade with the New York Islanders.
It was the second day Ehrhoff had been traded after the Islanders acquired him from Vancouver.
Negotiations began early Thursday after the team first contacted Ehrhoff in his native Germany.