Stephenson would need to gain permission from the CBA's Liaoning Flying Leopards - the Chinese team he's currently under contract with - and FIBA before a deal could be finalized, Charania adds.
CBA games have been suspended indefinitely due to the coronavirus outbreak.
The nine-year NBA veteran, who's averaged 26.7 points in 29 games with the Flying Leopards this season, reportedly expressed interest in returning stateside just over two weeks ago.
Stephenson played the first four seasons of his career in Indiana, helping the Pacers reach the Eastern Conference finals in 2013 and 2014.
Following his second stint with the Pacers, Stephenson joined the Lakers ahead of the 2018-19 campaign. Indiana's president of basketball operations Kevin Pritchard made controversial comments about Stephenson's impact on winning after the swingman's departure.
"Sometimes he was the best player on our team and sometimes he was the best player on the other team. We love Lance and we wish him the best," Pritchard said, according to SB Nation's Whitney Medworth.
Pritchard later claimed his comments were misconstrued, and he said it was "highly likely" the team would've re-signed Stephenson if he wasn't contacted by Lakers star LeBron James in free agency that summer.
The 29-year-old appeared in 68 games for the Los Angeles Lakers last season, averaging 7.2 points, 3.2 rebounds, and 2.1 assists.