West, currently a board member with the Golden State Warriors, is expected to take a management role with the Clippers.
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Sports Illustrated first reported the transaction and sources have confirmed the report to Eyewitness News.
West played 14 years for the Lakers, earning the nickname "Mr. Clutch" and later, The Logo, when the NBA symbol was modeled on him.
He then took coaching and management positions with the Lakers in the 1980s during the Showtime era that led to five championships. Then in the 1990s he was widely credited as the architect of the Kobe Bryant-Shaquille O'Neal transactions that led the team to three tiles - plus two more in the Bryant-Pau Gasol era after West had left the team.
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West later spent a five-year stint as general manager of the Memphis Grizzlies, credited with a turnaround in that team's performance.
West has been involved with the Warriors since 2011. The team has won two titles and made three finals appearances in the last three years.
He has continued to live in the Los Angeles area while working with the Oakland-based team.