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.
We've got to find a way to win a game. He's played well in the minors, now he gets his opportunity. We tried [with Jonathan Bernier]. The way I look at it, you get opportunities and you make the most of it. That's what [James Reimer] did. Now another opportunity is here and Sparks ... you gotta grab it. Is he ready? We'll find out.
— Maple Leafs coach Mike Babcock to the Toronto Star on recalling goalie Garret Sparks from the AHL to start Monday in his NHL debut
TONIGHT ON NHL NETWORK
5:00 ET: NHL Live Powered by Constellation 7:00 ET: NHL Tonight