The New York Knicks are finalizing a deal to acquire Houston Rockets forward Tracy McGrady, an NBA source told SI.com.

The framework of the deal involves sending McGrady to New York for forward Jared Jeffries, guard Larry Hughes and forward Jordan Hill. The Knicks and Rockets have agreed to swap 2011 first round picks and the Knicks will send the Rockets their first round pick in 2012.

The only outstanding issues involve protection for the draft picks.

The deal could be completed as early as tomorrow.

SI Apps
We've Got Apps Too
Get expert analysis, unrivaled access, and the award-winning storytelling only SI can provide - from Peter King, Tom Verducci, Lee Jenkins, Seth Davis, and more - delivered straight to you, along with up-to-the-minute news and live scores.