Restricted free agent Troy Daniels is in strong dialogue on a potential deal to re-sign with the Houston Rockets, league sources told RealGM.

Daniels, a revelation in the Rockets' first-round postseason series, has grown comfortable in his sharpshooting role for Houston. Both sides have started working toward an agreement, sources said.

From his Development League to NBA rise, from passed up opportunities to a contract in the league, Daniels carved a model for success stories out of the D-League a season ago. He averaged 21.5 points and 40.1 percent three-point shooting with the Rio Grande Valley Vipers, and he earned a call-up to the Rockets in February.

In four playoff appearances for the Rockets, Daniels scored 7.6 points and 2.2 rebounds per game. He delivered a season-extending shot in Game 3 of the series against the Portland Trail Blazers, hitting a game-winning three-pointer off a desperation pass from Jeremy Lin.

Daniels has received interest from several NBA teams, and both he and the Rockets have prioritized a new deal in restricted free agency. Houston elected to decline a team option on him in June.

After his four-year collegiate career at Virginia Commonwealth University, Daniels went to training camp with the Charlotte Bobcats before joining the D-League.