Having missed out on Damon Stoudamire, the Houston Chronicle reports that the Rockets have been forced to alter their search for a veteran guard for their backcourt.

With Stoudamire having made $12.5 million with the Trail Blazers last season and the Rockets able to offer their salary-cap exemption of only $1.8 million, the teams reportedly were discussing a sign-and-trade deal.

Rockets forwards Clarence Weatherspoon, owed $6.53 million over the final year of his contract, and Juwan Howard, due $26 million over four years, reportedly were dangled as trade bait, but the two clubs failed to reach an agreement, paving the way for Stoudamire to sign with Memphis.

Miami and Cleveland also reportedly were interested. With Stoudamire off the market, the Rockets will alter their search.

Latrell Sprewell, Michael Finley and Gary Payton have been discussed as options.

The Houston Rockets will have to alter their search for a veteran guard once their top target, Damon Stoudamire, agreed to a 4 year, $17 million deal with the Memphis Grizzlies.

The deal can't be completed and officially announced until the league lifts its "July Moratorium," which prohibits trades and free agent signings from happening until the salary cap is set.

Stoudamire, 31, appears to be a good fit for the Grizzlies, who are bracing for the loss of Earl Watson. Memphis reportedly is pursuing a sign-and-trade deal for Watson, who spent three seasons backing up point guard Jason Williams.

Stoudamire averaged 15.8 points and 5.7 assists with Portland last season.

The Washington Post is reporting that free agent guard Juan Dixon and the Portland Trail Blazers have agreed to a three-year contract worth around $8 million, according to Dixon's agent, Calvin Andrews. Contracts can't be officially signed until the NBA's new collective bargaining agreement is ratified, which should be early next week.

Dixon, a Baltimore native, was selected with the 17th overall pick of the 2002 NBA draft by the Wizards after starring at the University of Maryland, where he led the Terrapins to the 2002 NCAA championship. Dixon finished his college career as Maryland's all-time leading scorer.

In three seasons with the Wizards Dixon played in 176 games, had 23 starts and averaged 8.2 points and 1.6 assists.

"Juan will always love Washington and the entire Washington area because he has so many great memories there," Andrews said. "But he's excited about going to Portland, where he'll have the opportunity to expand his game and be a part of a young and improving team."

Dixon's departure from Washington was all but ensured when the Wizards acquired point guard Chucky Atkins , shooting guard Caron Butler and shooting guard Antonio Daniels this offseason. Restricted free agent guard Steve Blake , another former Maryland star, also has had conversations with other teams but the Wizards have the option of matching any offer Blake receives.

Last year, the Wizards declined to pick up an option on Dixon worth $1.76 million and left him unprotected in the expansion draft, but Charlotte declined to take him.

The Houston have landed already landed a big free agent in Stromile Swift and now hope to add a smaller one in Damon Stoudimire.

"Damon is very interested in playing for Houston," said Stoudamire's agent, Aaron Goodwin. "A sign-and-trade would have to be worked out in order for that to happen.

"Portland has shown interest in working deals with other teams. We have asked Houston to contact Portland and see if there is something that they can work out."

The Portland Trail Blazers signed 2004 first-round draft pick Sergei Monia of Russia to a multiyear contract on Tuesday

The 6-foot-6, 220-pound forward from Saratov, Russia, played last season for CSKA, which won the Russian National Championship and went to the European Final Four.

Monia averaged 5.3 points and 13.5 minutes in 20 games.

Monia was the 23rd overall selection in the 2004 draft. Portland acquired the pick as part of the trade that sent Bonzi Wells to Memphis.

Terms of the deal were not announced.

The Orlando Magic reportedly wanted to extend an offer to Chris Duhon, but instead turned to Miami reserve guard Keyon Dooling, an unrestricted free agent.

The Magic, according to one report out of Orlando, backed away from Duhon, a restricted free agent, because the Bulls are likely to match any offer.

Dooling's deal is worth an estimated $10 million over three years. Duhon's initial offer from the Bulls was in the range of $6 million over three years, and his shopping for a better offer probably isn't done. Portland and New Jersey reportedly are interested in him.

A team source said the Nets and Blazers agreed in principle to a sign-and-trade that will get them Shareef Abdur-Rahim on a six-year contract worth roughly $38 million.

In return, the Nets will send a lottery protected 2006 first-round pick to the Blazers.

Abdur-Rahim might be coming at less than half the price of Martin, but he isn't half the player. Abdur-Rahim, who is 28, has averaged 19 points per game and 8.1 rebounds per game for his career. Last season he struggled through injuries, but still managed 16.8 ppg and 7.1 rpg. Martin has averaged 12.4 ppg and 5.1 rpg for his career and had 15.5 ppg and 7.3 rpg for the Nuggets last season.

The Nets are trying complete a sign-and-trade with Portland for Shareef Abdur-Rahim so they can spend their mid-level exception on Miami point guard Keyon Dooling - who will visit the Nets this week - and perhaps a shooter such as Jon Barry or a forward like Malik Allen.

According to several sources, the Nets have offered their $4.9 million trade exception along with a future lottery-protected first-round pick that extends beyond the 2006 draft. The Blazers appear to be fixated on acquiring Nets' second-round pick Mile Ilic, but the Nets have no intention of surrendering the 7-1 center.

"We don't have a deal," Portland GM John Nash said. "The Nets know (what it will take)."

If Nash rejects the offer, the Nets will be forced to try to deal part, if not all, of the trade exception to another team for a free agent like Dooling or risk losing it when it expires near the end of the month.

The Blazers could lose Abdur-Rahim for nothing since the former All-Star has agreed to join the Nets for their mid-level exception - worth roughly $5 million - if a sign-and-trade cannot be executed.

"Shareef wants to play in New Jersey next year," said agent Aaron Goodwin, whose client passed on more lucrative offers from the Bucks and Clippers.

A sign-and-trade gives Abdur-Rahim a six-year deal worth as much as $38 million, as opposed to the five-year, $28 million pact he would have to settle for with the mid-level money.

Nets president Rod Thorn has until July 29 - or later, if the NBA's new collective bargaining agreement isn't completed by this Friday - to use his trade exception.

"We would like to get something done so we can move on in other directions," said Thorn, who is also trying to re-sign free agent Clifford Robinson. "We have had some discussions (with Portland) but we haven't gotten any place."

RealGM's Christopher Reina is reporting that the Portland Trailblazers are not in the running for Antonio Daniels.

Portland GM John Nash indicated to Reina that the Sonics' free agent wants a five year deal and that the club is unwilling to give him a long term contract.

This now leaves the Wizards and Lakers as frontrunners for Daniels, with the Jazz and Spurs considered to be long shots.  

It is also plausible for Daniels to return to Seattle, but it appears to be highly unlikely and only if the market for the former member of the Grizzlies, Spurs and Blazers dries significantly.

Without a proven NBA point guard on their roster, the Lakers are the logical choice for Daniels, who would likely step in immediately and join their starting line-up.  The Lakers have also stalled with Daniels over the length of the contract, but appear to now be close on a deal.

If Daniels goes to the Wizards, he would fill the void as a combo guard created by Larry Hughes' departure.

Daniels' agent Tony Dutt could not be reached on Tuesday night for comment.

A source close to free agent guard Juan Dixon said that Dixon is planning to meet with the Portland Trail Blazers this week. Dixon also has been contacted by Miami and Indiana.

Dixon had 35 points in Game 4 of the Wizards first round series against the Bulls.