Former first-round pick Terrence Jones has agreed to sign with the Santa Cruz Warriors, a source confirmed with The Chronicle.

USA Today’s Sam Amick was the first to report news of the addition.

Jones, 25, was waived last month by Qingdao of the Chinese Basketball Association. Santa Cruz, Golden State’s G League affiliate, has the first claim in the rotating waiver pool and will use it on Jones.

A Portland, Ore., native, Jones was the No. 18 pick of the 2012 NBA Draft by Houston after starring for two seasons at Kentucky. His best season came in 2013-14 with the Rockets, when he averaged 12.1 points on 54.2 percent shooting, 6.9 rebounds and 1.1 assists.

Jones split last season between New Orleans and Milwaukee before ultimately signing a one-year, $2 million deal with Qingdao in July.

Connor Letourneau is a San Francisco Chronicle staff writer. Email: cletourneau@sfchronicle.com. Twitter: @Con_Chron