Report: Rockets trade Melo to Bulls

The Houston Rockets agreed to trade Carmelo Anthony and cash to the Chicago Bulls on Monday, league sources told ESPN's Adrian Wojnarowski.

Anthony reportedly won't play a game for the Bulls, who will waive or trade him at some point before the Feb. 7 deadline. However, sources told Wojnarowski the club won't waive him immediately. The Bulls could include Anthony in a one-for-one trade, but can't "aggregate his contract" in a deal, Wojnarowski adds.

Had Houston waived Anthony, they would've had to pay $3 million in taxes. By trading him to the Bulls, the Rockets will pay $900,000 instead, according to The Athletic's David Aldridge.

The 34-year-old last played Nov. 8 and appeared in 10 games for the Rockets, averaging 13.4 points on 40.5 percent shooting.

The NBA office is closed for Martin Luther King Jr. Day, so the trade will reportedly become official Tuesday.

The Rockets will also receive the draft rights to Tadijia Dragicevic while the Bulls receive the rights to Marko Todorovic, according to Jonathan Feigen of the Houston Chronicle.

Houston also apparently waived James Nunnally. The open roster spot was necessary in order for Kenneth Faried to sign and play on Monday night against the Philadelphia 76ers.

Nunnally signed a 10-day contract last Wednesday, appearing in two games and averaging 4.5 points. Faried was waived by the Brooklyn Nets last Saturday and will reportedly agree to the veteran's minimum with the Rockets.