Howard Beck of the New York Times reports that all of the players have been agreed upon in the potential trade between the Rockets and Knicks for Tracy McGrady.  

The remaining negotiating point is protection on the draft pick(s) the Rockets would gain in the trade.  The Rockets want no protection on either the swapped 2011 first-round pick or the 2012 first-round pick, but the Knicks want protection in case the team misses the playoffs, and is in the lottery, either year.  ESPN reports that the Knicks are looking for top-10 protection.

Three sources told Marc Stein of ESPN on Wednesday night that there remains a good chance that the Knicks and Rockets will get the deal done.  

"I'm pretty confident," one source said.

For taking back Jeffries, the Rockets have asked for the rookie Jordan Hill, along with two draft picks, but the Knicks have informed Houston that they are willing to include only two of these three assets.  

Beck reports that the trade would send Jared Jeffries, Larry Hughes and Jordan Hill to Houston in exchange for McGrady, Brian Cook and Joey Dorsey.

Clearing Jeffries from their payroll would mean the Knicks would be very close to the amount of cap room they will need to offer two maximum contracts this summer.

"It could be the most important trade the Knicks have made in a decade," writes Beck.

"I'm hopeful," Donnie Walsh said, without commenting on any specific discussion.

"We've come a long ways in two years," Mike D'Antoni said. "We're not going to waver from what we want. And if something will come along that helps in the future, then that's what we'll do."