Report: Rockets, Mavericks not talking sign and trade for Parsons

UPDATE: USA Today's Sam Amick reports that Dallas and Houston will not come to terms on a sign-and-trade for Parsons. *** The Dallas Mavericks and Houston

UPDATE: USA Today's Sam Amick reports that Dallas and Houston will not come to terms on a sign-and-trade for Parsons.

A sign and trade between Dallas and Houston will not be happening re: Chandler Parsons, I'm told. The Rockets have the offer sheet.

— Sam Amick (@sam_amick) July 10, 2014

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The Dallas Mavericks and Houston Rockets have engaged in talks about a potential sign-and-trade involving restricted free agent small forward Chandler Parsons, according to Yahoo Sports' Adrian Wojnarowski.

Parsons on Thursday signed a three-year offer sheet worth $46 million with the Mavericks. If Dallas submits the offer sheet to Houston, the team would have three days to decide whether to retain Parsons by matching.

Dallas has yet to deliver the sheet to Houston, allowing the teams to negotiate sign and trade scenarios. Via the The Dallas Morning News:

“There’s communication because there’s sign-and-trade possibilities,” president of basketball operations Donnie Nelson said Thursday morning. “There’s ways that both sides can win, so it’s just an ongoing process. But we as general managers, no matter what the situation, we’re always talking and communicating with each other.”

Parsons became a restricted free agent last month when Houston declined to exercise its team option on the 25-year-old forward.

The Rockets plan to sign free agent forward Chris Bosh to a four-year, $88 million max deal and then match the offer sheet for Parsons, according to SI.com's Chris Mannix.

Houston would need to clear cap space to sign Bosh, potentially by unloading center Omer Asik and guard Jeremy Lin in trades.

The Rockets have already agreed to a potential trade with New Orleans involving Asik, and a trade that would send Lin to Philadelphia is in the works, according to ESPN.com's Brian Windhorst and Chris Broussard.

Parsons averaged a career best 16.6 points, 5.5 rebounds and 4.0 assists in 74 games while helping the Rockets earn the No. 4 seed in the Western conference. The team lost its first round playoff series against Portland in six games.

The Mavericks, who last month agreed to terms on a three-year deal with forward Dirk Nowitzki, lost their first-round series to No. 1 seed and eventual champion San Antonio.

MORE NBA: Free agent tracker | Grading every deal so far

-- Chris Johnson