The person spoke to The Associated Press on condition of anonymity Tuesday because the deal has yet to be announced.
Iginla scored 30 goals and had 31 assists in 78 games with the Boston Bruins last season. He will be counted on to help fill the scoring void left by Paul Stastny, who signed a four-year, $28 million deal with St. Louis earlier in the day.
Iginla, who turned 37 on Tuesday, is a six-time All Star. He's led the league in goals twice and has 560 in his career with Calgary, Pittsburgh and Boston.
TSN first reported Iginla's signing with Colorado.