John Reid of the New Orleans Times-Picayune reports: Lee Nailon is close to reaching a one-year deal with the Hornets, his agent, Larry Fox, said Thursday.

Bob Bass, the Hornets executive vice president of basketball operations, could not be reached for comment, but earlier this week he said discussions with Fox had resumed.

Nailon, a restricted free agent, has played for the Hornets the past two seasons. He averaged 10.8 points and played extensively when forward Jamal Mashburn missed 42 games because of a lower abdominal strain.

"We're talking to the Hornets to do something fair and better than their original offer, and we're very close to finalizing something," Fox said. "The Hornets have been understanding of our situation."

Training camp begins Tuesday, and the only offer Nailon has received is the Hornets' qualifying offer of $789,813. Fox said no offers have been forthcoming because teams fear the pending luxury tax and changes in salary cap restrictions that will take effect next season. Other teams also would have to offer Nailon a three-year contract because he is a restricted free agent.

If Nailon doesn't agree to a deal with the Hornets and doesn't get an offer from another team by Tuesday, the Hornets retain his rights and they can re-sign him at any time during the season.

Barry Jackson of the Miami Herald reports that Eddie House will remain in Miami. He has decided to accept the Heat's one-year, $770,000 qualifying offer, agent Mark Bartelstein said Monday.

As a restricted free agent, the Heat would have had the opportunity to match if House had signed an offer sheet from another team. ''It's difficult being a restricted free agent,'' Bartelstein said. ``He's always wanted to stay down here.''

By signing the Heat?s qualifying offer, House will play in Miami for this season and become a restricted free agent again next summer.

In other Heat news, Khalid El-Amin is close to signing a partially guaranteed, two-year deal. He will probably have to beat out Mike James for a spot on the roster. Miami has also had preliminary conversations with Hornets restricted free agent, Lee Nailon.

Mike Fisher of DallasBasketball.com has learned that the sick-and-tired Sonics have decided that Wednesday is Hump Day -- because if Rashard Lewis doesn?t come over the hump and sign with Seattle by that day, they are threatening to sever ties and free him to sign with Dallas.

Here is the latest from Dallasbasketball.com on the Lewis sweepstakes:

Sources close to Lewis tell us that behind closed doors with Lewis, Seattle is angered by his reluctance to accept an offer that has been bumped up to $64 million over seven years, and that the Sonics are informing the free agent that their ultimatum, if not accepted, will lead to them signing replacement part Lee Nailon and not cooperating with Lewis? attempts to get bigger money via a sign-and-trade.
     "If that?s true,?? Mavs owner Mark Cuban says as a response to the scoop, "I think we can afford to wait until Wednesday. Actually, we?ll wait as long as it takes.??
     
Seattle is unwilling to be so patient with the 6-10 small forward. The offer had been $60 mil base (in comparison to the $4.5 mil-a-season, three-year deal Dallas can offer) but was recently upped to $64 mil.

   
And the incentive package that Seattle says represents Lewis? "max-money desire?? of $90 mil? Our sources tell us the $15 million package features three key "reachables":
     1) Lewis must play in 50 wins;
     2) Lewis must help the club to the second round of the playoffs;
     3) Lewis must average 9.25 rebounds per game.

A Dallas exec concedes that sign-and-trade talk that once laughably included Seattle?s request of "two of the Big 3?? (Dirk, Nash, Fin) has turned more realistic in the last two weeks. Now there are discussions focusing on a three-way, with Seattle settling for landing a fat-contracted player in the final year of his deal who might next season create a cap vacancy of $6.5 mil or so. (That, and the dumping of Gary Payton, would put Seattle in position to be a major-player in the Summer-of-2003 Duncan Derby.) Yes, the Mavs have tried to make Tariq Abdul-Wahad part of the giveaway, with no enthusiastic takers.
     
Dallas will happily do the three-year thing. But the Mavs prefer the sign-and-trade route. "Then,?? a source says, "they wouldn?t have to worry about a max deal in three years. They?ve got Rashard long-term at the $64 million. As long as they give up nothing big, it?s perfect for them.??
     
RealGM Note: Lee Nailon is a restricted free agent and because New Orleans is over the cap, they can only match offers up to the Mid-level exception for him.