Denver has agreed to a deal to send guard Ty Lawson to Houston, league sources tell Yahoo Sports.
It remains to be seen what or whom they'll receive in return, but presumably it'll be a little better than flat out cutting him.
EDIT: Actually, that's just been reported too:
Sources: As part of deal for Ty Lawson, Houston will send Kostas, Pablo Prigioni, Joey Dorsey, Nick Johnson and a protected first to Denver.