Curry, who got a three-year, $6 million contract, told the Bucks on Sunday that he'd accept their two-year offer worth $1.1 million annually.
"He gave his word two times, then changed his mind," Bucks' general manager Bob Weinhauer said. "I don't want to talk about him."
Curry led the NBA in 3-point accuracy last season, shooting 47.6 percent from behind the arc. With Toronto, he'll be teamed with Dee Brown, who led the NBA with 135 3-pointers and 349 3-point attempts last season.
Raptors' general manager Glen Grunwald acknowledged he offered more money.
"He said he was close to a deal with Milwaukee last weekend. We made contact with him on the first day of the free agent season. We had a very good discussion with his agent and things progressed where we jumped at the chance to sign him," Grunwald said.
"We're getting a player of great character," Grunwald said. "He'll provide firepower off the bench, we're looking forward to having his veteran presence and his shooting ability."
The 6-foot-5 Curry, 35, averaged 10.1 points with the Bucks, his first in Milwaukee after 10 seasons with the Charlotte Hornets and one each with the Cleveland Cavaliers and Utah Jazz.
Curry, whose career high is 38 points in a game against Toronto in 1996, has averaged 12.8 points in his career. He is a career 40.4 percent 3-point shooter and an 84 percent free-throw shooter.
Meanwhile, Grunwald said free agent forward John Wallace is about to sign elsewhere.
"His agent advised me this morning that he's doing something else. I assume that's going to happen, with that decision made, we decided to go in an another direction," he said.
Grunwald also said he's "still somewhat optimistic" he can resign free agent forward Charles Oakley, who visited with the Lakers earlier this week.
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