The Nets will soon decide where the team will play its home games next season, either remaining at the Izod Center in the Meadowlands or moving to Newark to play at the Prudential Center.

An agreement is being hammered out that would allow the Nets to avoid a $7.5 million penalty to the Izod Center for breaking its lease and moving to Newark.

New Jersey officials still hold out hope of keeping the Nets in Newark beyond next season but the team is moving forward with its plans to break ground on a new arena in Brooklyn.

Nets' spokesman Barry Baum said the team would make a decision later this month -- after completing the paperwork on financing for the Brooklyn arena -- on whether to stay in the Meadowlands or move to the Prudential Center.