The Suns appear unwilling to sign Steve Nash to a three-year deal, an offer he is likely to receive from the Raptors and Nets.

Nash earned $11.7 million last season, but the Phoenix offer is likely to be for less than that.

"He (Nash) will have many factors to weigh," Suns President of Basketball Operations Lon Babby said. "Candidly, we will have decisions to make. If we can get together and reach a common ground, that's fine. Regardless of the outcome, the one thing I'm confident about will be that it'll be handled with grace and dignity on both sides. We'll see if there is a basis for the relationship to continue that's best for him and also best for us."  

The Mavericks are prepared to offer Steve Nash a two-year deal if they are unable to secure Deron Williams, according to sources.

Nash played several seasons with the Mavericks until signing with the Suns in the summer of 2004. Nash and Dirk Nowitzki remain close friends.

"Everyone knows they're going to go after Deron Williams," said Nash. "He's a terrific player, a lot younger than I am, and that'd be the smart thing for them to do. But if they don't get him, maybe I'll be a candidate there as well. It's a great city. It's one that obviously I have a history with and an affinity and affection for, so it's another opportunity different from Toronto but one that's exciting and has some great facets to it as well."

Nash sees the circumstances of his 2004 exit as being irrelevant in considering a return.

"That's so far in the past. For me that's not really a factor."

The Raptors will bring a contingent of five members of the organization to meet with Steve Nash as soon as he's ready on Sunday.

Toronto's offer, likely to reach $12 million per season according to sources, is likely to be the most lucrative.

The Raptors are pushing for a playoff return in the 12-13 season.

"The Raptors would be one of those teams where you're probably not going there to win a championship in the next three years," said Nash. "For me it'd be going home to Canada, to a great city, and trying to help an organization move forward.

"I'm open to the positives of all of them. It'd be great if four or five contenders came after me and all offered me a deal, but the reality is I might not get that opportunity. So I'm going to look at every opportunity and Toronto will be one that I'll study as well and look at the opportunity for them to grow in the next three years and what kind of impact I can have on that team. And obviously from a community standpoint, it's a special place for me."

Steve Nash doesn't have a favorite contender to sign with as free agency begins, but he can envision himself leaving the Suns.

The Suns, Raptors, Mavericks, Knicks and Mavericks are the favorites to sign him.

"I couldn't list a favorite," Nash said.

"But I do know that for the first time I realize that it might not be Phoenix. I would have said even in the middle of (last) season or last year that I would have thought I probably would have stayed in Phoenix forever. But it's come to a point now where I'm facing the reality that's not (the case)."

Nash says he senses Suns officials are ready to rebuild without him.

"I don't necessarily feel like it's a home run anymore," Nash said of re-signing with the Suns. "I don't necessarily feel like they're determined to keep me. I think there's a lot of factors. So, one, I'm not sure they're determined to keep me, (and) two, there's other opportunities that are exciting. So I think I have to be open-minded ... but at the same time be able to forecast where I'll be most successful and happiest."

The NBA announced that it has reached a settlement agreement with the NBA Players Association of the recent arbitration proceeding filed on behalf of Chauncey Billups, J.J. Hickson, Jeremy Lin and Steve Novak.

Under the settlement, the union agreed to limit the scope of the ruling by arbitrator Kenneth Dam in exchange for the league's agreement to drop its appeal. The rule will now be that players who are claimed from waivers will have the same "Early Bird" rights as if they had been traded, but will not have full "Bird" rights unless they are claimed through the league's amnesty procedure.

Below are the players on whose behalf the arbitration proceeding was brought and their status when free agency opens on July 1:

Chauncey Billups - Bird
J.J. Hickson - Bird
Jeremy Lin - Early Bird 
Steve Novak - Early Bird 

The Suns will be serious contenders in the pursuit of Ray Allen, according to sources, even if they are unable to re-sign Steve Nash.

Phoenix will have significant cap space and can pay Allen more than the Heat or Knicks, two teams expected to be in the running him.

Allen was represented by Suns president Lon Babby for most of his career.

Allen has expressed interest in re-signing with the Celtics.

Negotiations are ongoing but two sources briefed on the talks tell the New York Times that the NBA and players union are moving closer to an agreement that would resolve the dispute between the two sides over whether any Bird rights would remain attached to players claimed off waivers.

An arbitrator ruled in the union's favor and the league office announced its intention to appeal the ruling, which would create uncertainty just when teams are set to begin contract discussions with the affected players.

A settlement would likely grant some form of Bird rights to players claimed off waivers.  An agreement could be announced Friday but no later than Sunday at midnight when free agency officially opens.

The matter is particularly important to the Knicks who could be granted new exceptions to sign Jeremy Lin and Steve Novak.  Chauncey Billups and J.J. Hickson are also impacted by the rule.

"They're not going into free agency with this out there," said one person with knowledge of the negotiations.

Sources say Kostas Papanikolaou is receiving attention from several teams at the end of the first round, including the Heat and Thunder.

Papanikolaou is a 21-year-old Greek forward who had a breakout performance in the Euroleague Final Four.

Papanikolaou has two seasons remaining on his deal, but has an affordable buyout that can bring him to the NBA for the 13-14 season.

Al Iannazzone of Newsday reports the Knicks are looking to add a pick with Papanikolaou as the target.

The Knicks are in search of backcourt help, as Toney Douglas is the only guard under contract for next season.

Players the Knicks are considering at No. 48 are 6-foot-2 Marquette combo guard Darius Johnson-Odom, Georgetown 6-7 shooting guard Hollis Thompson and 6-6 Tennesee Tech shooting guard Kevin Murphy.

Texas Tech small forward Khris Middleton also is in the mix, but scouts are concerned after a lackluster junior year plagued all season by ankle issues.

Steve Nash is expected to choose between the Suns, Knicks, Nets, Raptors and Mavericks as he enters free agency, according to sources.

The Nets have cap space to sign Nash while also keeping Deron Williams. A source said the Nets would welcome pairing Williams and Nash together.

When asked if the Knicks or Nets were a better option, Nash said: "Right now the Knicks. Maybe in the few years the Nets."

The Knicks would need to agree to a sign-and-trade with Phoenix in order to acquire Nash.

Nash isn't ruling out remaining with the Suns.

"Phoenix has been home for 10 years," Nash said. "It’s a very important place for me. I'm a Phoenix Sun. I still am to this day. It's definitely still possible. We'll see what happens."