Orlando currently ranks 29th in field-goal percentage (41.9%) and dead last in points per game (98.1).
DeRozan is averaging 19.4 points on 49.3% shooting this season and would provide an immediate boost to the Magic's offense.
The 30-year-old holds a $27.7-million player option for 2020-21 and was far apart in extension talks with San Antonio prior to this season, according to The Athletic's Sam Amick.
The Toronto Raptors drafted the USC product ninth overall in 2009. There, he developed into a perennial All-Star but drew criticism for his overreliance on mid-range jumpers and apparent unwillingness to adapt to the modern 3-point game.
In July 2018, Toronto traded DeRozan to the Spurs in the Kawhi Leonard blockbuster deal.