The team announced the signing Thursday. The 38-year-old was waived July 7 by Phoenix -- which acquired him in a trade with Memphis -- making him a free agent.
Korver's agent, Jeff Schwartz of Excel Sports, told ESPN's Adrian Wojnarowski that it is a one-year deal worth $2.6 million.
According to ESPN's Bobby Marks, the Bucks will incur a $1.6 million salary-cap hit on Korver's deal. The Suns, after waiving Korver earlier this month, will receive a $559,000 set-off on the $3.4 million they owe him.
Korver had been traded to Memphis by Utah, where he played most of last season.
Korver appeared in a combined 70 games with the Cavaliers and Jazz last season, averaging 8.6 points, 2.3 rebounds and 1.2 assists and shooting 39.7% from 3-point range. The 2015 All-Star ranks third among all active NBA players in 3-point field goal percentage (42.9) and ninth in NBA history.
Information from The Associated Press was used in this report.