Both the Herald Sun and The Age newspapers have reported that Shanahan is set to join the new Melbourne-based team and become the second player signed by the Dragons. Last week South signed AIS swingman Joe Ingles on a two-year deal.

"It seems everyone's talking about the Dragons around the league, it'll be great to start working with the roster and really building a team culture," Shanahan told the Herald Sun.

"The possibility of playing with ‘Hammer’ (Shane Heal) was also a big drawcard. I'd love to be on the court with him should he choose to return."

Shanahan, a Victorian, said he hoped to find a permanent home in Melbourne.

"I'd love to see out my career in my home town," Shanahan said. "I can't wait to run on to Vodafone Arena in front of our home crowd in October."

During a career which has included three championships, Shanahan has played with the Perth Wildcats, North Melbourne Giants, Brisbane Bullets, Cairns Taipans, Wollongong Hawks, Canberra Cannons and Hunter Pirates.