Jason Williams is close to being traded in a three-team deal that would include Miami, according to an NBA source familiar with the Grizzlies' dealings. It is not known where Williams would land in the proposed deal.

Griz president Jerry West already has Williams's replacement in the starting lineup on the radar.

Although Damon Stoudamire is atop the Grizzlies' wish list, West downplayed a Houston Chronicle report that the Griz and Stoudamire have agreed on a four-year, $17 million contract.

"We have interest," West said Saturday. "We're exploring a lot of options, and he's not the only one. We have interest in a lot of people."

Having missed out on Damon Stoudamire, the Houston Chronicle reports that the Rockets have been forced to alter their search for a veteran guard for their backcourt.

With Stoudamire having made $12.5 million with the Trail Blazers last season and the Rockets able to offer their salary-cap exemption of only $1.8 million, the teams reportedly were discussing a sign-and-trade deal.

Rockets forwards Clarence Weatherspoon, owed $6.53 million over the final year of his contract, and Juwan Howard, due $26 million over four years, reportedly were dangled as trade bait, but the two clubs failed to reach an agreement, paving the way for Stoudamire to sign with Memphis.

Miami and Cleveland also reportedly were interested. With Stoudamire off the market, the Rockets will alter their search.

Latrell Sprewell, Michael Finley and Gary Payton have been discussed as options.

The Houston Rockets will have to alter their search for a veteran guard once their top target, Damon Stoudamire, agreed to a 4 year, $17 million deal with the Memphis Grizzlies.

The deal can't be completed and officially announced until the league lifts its "July Moratorium," which prohibits trades and free agent signings from happening until the salary cap is set.

Stoudamire, 31, appears to be a good fit for the Grizzlies, who are bracing for the loss of Earl Watson. Memphis reportedly is pursuing a sign-and-trade deal for Watson, who spent three seasons backing up point guard Jason Williams.

Stoudamire averaged 15.8 points and 5.7 assists with Portland last season.

Realizing they are going to lose unrestricted free agent Earl Watson anyway, the Grizzlies are hoping to get a sign-and-trade deal for the guard.

"Basically, the ball is in Memphis' court," said Mitchell Butler, Watson's representative. "There's a ton of interest in Earl. It's a complex process but one that we want to progress on quickly."

Bonzi Wells is a Sacramento King.

The Grizzlies exercised an $8 million team option Friday and agreed to trade Wells to Sacramento in a three-team deal involving the Utah Jazz, NBA sources confirmed.

The deal won?t be announced until the NBA?s moratorium is lifted because of a delay in finalizing the collective bargaining agreement.

Wells, though, will go to Sacramento for guard Bobby Jackson while the Kings will send Greg Ostertag to Utah.

The Jazz also will send forward Curtis Borchardt, and guards Raul Lopez and Kirk Snyder to Memphis.

The 29-year-old Wells was considered the best guard available now that Ray Allen, Michael Redd, Bobby Simmons, Larry Hughes and Cuttino Mobley have agreed in principle to sign new deals.

The Grizzles also had more than cursory conversations with Boston, Dallas, Washington, Detroit and Utah.

Griz president Jerry West has shopped for deals since Wells was unceremoniously and inexplicably removed from the team during the playoffs. The team also is seeking to move guard Jason Williams and would like to consummate a sign-and-trade deal with free agent guard Earl Watson.

Bonzi Wells may have to wait another week to learn his fate.

NBA sources indicated Thursday that the league and its players union have agreed to automatically extend the deadline on player contract options to coincide with the collective bargaining agreement moratorium.

There have been unexpected delays in finalizing the collective bargaining agreement.

That means the Grizzlies likely will have until July 29 or longer to decide whether to exercise an $8 million option on Wells for the 2005-06 season.

Originally, the decision had to be made by July 1 but Wells and the Grizzlies agreed to extend the deadline until today.

Wells has no input this time.

Like other free agents, he must wait until the CBA is finalized before his contract status is determined.

The Grizzlies plan to trade Wells immediately should they pick up the option. If not, the team will seek a sign-and-trade deal involving the veteran guard.

Quiet throughout the first three weeks of the NBA's free-agent courting period because of roster and financial restrictions, the Orlando Magic appear poised now to spring into action.

Intent on upgrading their depth at point guard, the Magic could be on the verge of extending a contract offer to either Memphis' Earl Watson, Miami's Keyon Dooling or Chicago's Chris Duhon.

Orlando is in no hurry to make a splash in free agency, assistant general manager Otis Smith said Thursday, but the team would like "to have something concrete in the next two to three days."

Such a signing would allow the Magic to move Steve Francis exclusively to shooting guard and signal that the team does not believe Jameer Nelson is ready to start at point guard.

Speculation that the NBA will extend a moratorium on signing free agents from Friday to next month will not affect Bonzi Wells's contract status, according to the Grizzly guard's agent.

League sources indicated Tuesday that the collective bargaining agreement won't be finalized this week and the delay could prevent teams from signing free-agent contracts until Aug. 1.

The Grizzlies and Wells agreed to extend the deadline for deciding on an $8 million team option to coincide with ratification of the CBA. That was supposed to happen by Friday.

But Wells will either have the option picked up with a trade on the table or become an unrestricted free agent by the weekend.

Wells is not interested in prolonging the process beyond Friday.

"We expect a resolution," said William Phillips, who Wells retained as his agent following the season. "At the end of the day, Bonzi will be fine. The closer we get to the 22nd, the more serious the discussions get."

At least seven teams have expressed interest in Wells. The Grizzles have had more than cursory conversations with Boston, Dallas, Washington, Sacramento, Detroit, Utah and the Los Angeles Clippers regarding Wells.

League sources indicated Tuesday that the collective bargaining agreement won't be finalized this week and the delay could prevent teams from signing free-agent contracts until August 1st.

This will affect potential sign-and-trades the most.

The Grizzlies' Earl Watson is expected to be moved in a sign-and-trade as soon as the moratorium is lifted.

Forward Stromile Swift, the only player the Rockets have targeted in free agency, agreed to terms with the Rockets on Monday evening, Swift's agent, Andy Miller, said.

Swift spent almost two weeks since visiting the Rockets considering his options, including a strong push by the New Jersey Nets, but Miller said Swift, 6-10, decided the chance to play with Tracy McGrady and Yao Ming inspired him to take the Rockets' offer.

The Rockets, who are over the salary cap, could offer only the midlevel exception, expected to be worth between $28 million and $32 million over five years. He likely could have received greater offers, particularly in a sign-and-trade deal, but decided to end his free agency.

Swift, 25, has averaged nine points and five rebounds in five NBA seasons.

"He has decided to become a Houston Rocket," Miller said. "He's absolutely excited about playing with Tracy McGrady and Yao Ming. The Houston organization has been very consistent and adamant about getting him."