The signing has yet to be made official, but an agreement has been reached between the two sides, Naylor added.
Posey won the Grey Cup with the Toronto Argonauts in 2017, earning the game's MVP award after catching seven passes for 175 yards and one touchdown.
A former third-round draft pick of the Houston Texans, Posey recently tried his luck at an NFL comeback, attending Baltimore Ravens training camp. However, the receiver was cut as the team finalized their 53-man roster.
Posey and the Argos were reportedly interested in a reunion, but the Lions won the battle for his services. The team recently lost Emmanuel Arceneaux for the season with a knee injury.
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