Two people with knowledge of the deal say Houston, Sacramento and Cleveland are finishing a trade that will most notably send Iman Shumpert from the Kings to the Rockets.
Houston is sending Brandon Knight and Marquese Chriss to the Cavaliers. Alec Burks - now traded for the second time this season, after starting the year in Utah - will go from the Cavaliers to the Kings.
In a separate transaction, the Cavs will send Nik Stauskas and Wade Baldwin, both acquired from Portland earlier in the week in the deal that sent Rodney Hood to the Trail Blazers, to Houston. It remains unclear how they figure into the Rockets' plans.
The people spoke on condition of anonymity because the NBA trade call has not yet been completed.
Shumpert is a career 39 percent 3-point shooter, which will be valued by the Rockets. Houston is on pace to break the record for most 3-pointers attempted in a season, something it did in each of the last two seasons as well.
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