Hurns will sign a two-year, $12 million deal, sources told ESPN's Adam Schefter.
Hurns was released by the Jacksonville Jaguars on Tuesday in a move that saved the team $7 million against the salary cap.
The 26-year-old Hurns, who joined the Jaguars as an undrafted free agent in 2014, has caught 189 passes for 2,669 yards and 21 touchdowns in his four NFL seasons. He became expendable as rookies Dede Westbrook and Keelan Cole emerged into larger roles for the Jaguars in 2017.
On Thursday, the Cowboys signed Deonte Thompson to a one-year deal worth up to $2.5 million that included a $1 million signing bonus. Thompson is coming off his best season with 38 receptions for 555 yards and two touchdowns, splitting time with the Chicago Bears and Buffalo Bills.
It all puts Dez Bryant's time with the Cowboys in jeopardy. Bryant is set to make $12.5 million this season and count $16.5 million against the salary cap in 2018.
Hurns, after catching 64 passes for 1,031 yards and 10 touchdowns in 2015, was signed to a four-year, $40.05 million extension in 2016 that included $20 million guaranteed. He is one of just four players in Jaguars franchise history to surpass 1,000 receiving yards in a season.
Since signing that extension, however, Hurns has missed 11 games because of injury and has caught 74 passes for 961 yards and five touchdowns over the past two seasons.
ESPN's Todd Archer and Michael DiRocco contributed to this report.