Ownership of the Houston Rockets is in substantive talks with the Connecticut Sun over the potential purchase and relocation of the WNBA franchise, sources told ESPN this week. The discussions have been described as "positive," with Rockets ownership improving its offer to a number the Sun might find acceptable.

A source close to the situation said that while a formal offer has been discussed, the parties have not signed an exclusivity agreement. There has not been a decision on the future of the franchise.

The WNBA previously indicated strong interest in returning to Houston. At the league's three-team expansion announcement in June, commissioner Cathy Engelbert specifically highlighted Houston and Rockets owner Tilman Fertitta as "up next" and "the one we have our eye on."

The Sun launched a process to explore investment options over a year ago, initially seeking a limited partnership sale to fund infrastructure development. Houston was among the groups that expressed interest in buying the franchise outright, eventually raising its offer to $250 million.

In early July, Sun ownership reached a deal to sell the team for a record $325 million to a group led by former Celtics minority owner Steve Pagliuca. The proposed sale would have moved the franchise to Boston, but the WNBA effectively blocked the deal from progressing.

The league held firm that "relocation decisions are made by the WNBA Board of Governors and not by individual teams." Cities that have already gone through the expansion process have priority over Boston.

The Sun have been owned by the Mohegan tribe since 2003, when they bought and relocated the franchise from Orlando to Uncasville, Connecticut. A sale to Rockets ownership would mark the latest example of the WNBA moving toward having more teams with NBA owners.

The WNBA offered to buy the Sun for $250 million, which would have allowed it to facilitate a sale to a market of its choice. There was a belief the league was looking to move the franchise to Houston after the city did not receive an expansion team in June.

The hope is that a resolution on the franchise's future can be determined before free agency, where all but two league veterans are not under contract. The exact timing of free agency remains uncertain as the league and players' union continue to negotiate a new collective bargaining agreement with a Jan. 9 deadline.

The Houston Comets were an iconic original franchise that won the league's first four championships from 1997-2000 before disbanding after the 2008 season.