John Reid of the New Orleans Times-Picayune reports: Lee Nailon is close to reaching a one-year deal with the Hornets, his agent, Larry Fox, said Thursday.

Bob Bass, the Hornets executive vice president of basketball operations, could not be reached for comment, but earlier this week he said discussions with Fox had resumed.

Nailon, a restricted free agent, has played for the Hornets the past two seasons. He averaged 10.8 points and played extensively when forward Jamal Mashburn missed 42 games because of a lower abdominal strain.

"We're talking to the Hornets to do something fair and better than their original offer, and we're very close to finalizing something," Fox said. "The Hornets have been understanding of our situation."

Training camp begins Tuesday, and the only offer Nailon has received is the Hornets' qualifying offer of $789,813. Fox said no offers have been forthcoming because teams fear the pending luxury tax and changes in salary cap restrictions that will take effect next season. Other teams also would have to offer Nailon a three-year contract because he is a restricted free agent.

If Nailon doesn't agree to a deal with the Hornets and doesn't get an offer from another team by Tuesday, the Hornets retain his rights and they can re-sign him at any time during the season.