The deal is expected to be a one-year contract for the veteran's minimum, Watkins reports. RealGM's Shams Charania reports that Terry agreed to a one-year deal with Houston despite interest from the New Orleans Pelicans.
Terry averaged seven points in 21.3 minutes in 77 games for Houston last season, his first with the team. The Seattle native cracked the starting lineup after a season-ending injury sidelined point guard Patrick Beverley in September. Terry averaged 9.2 points and 2.8 assists in the postseason.
The 16-year NBA veteran is expected to come off the bench behind Beverley and Ty Lawson this upcoming season.
Terry scored his 2,000th three-pointer last December, becoming just the third player in NBA history to accomplish the feat.
- Christopher Chavez