Milt Palacio's agent, Andy Miller, said yesterday that his client is still pondering offers from several other clubs but believes the point guard favors the Nets.

"We've had conversations and an ongoing dialogue," Miller said, "but I can't say a deal is imminent or will be reached. Milt is analyzing other offers and has to sift through things. In my heart of hearts, I think he wants it to work out with the Nets . . . but we'll leave it in Milt's hands to weigh his options."

The Nets are believed to offer Palacio a two-year deal averaging about $1.25 million. Palacio averaged 5.8 points and 3.5 assists last season with Toronto, his fifth team in six seasons.