The Rockets reached agreement with K.J. McDaniels on a three-year contract worth $10 million, having made retaining the young prospect one of their offseason priorities.
McDaniels played little after his trade from Philadelphia but had shown his potential with the 76ers, averaging 9.2 points in 52 games before the trade.
For McDaniels, 22, the deal is a significant payoff for his gamble when he refused to sign a long-term deal with the 76ers as a 2014 second-round pick.