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Via:Yahoo.com/sports

The Houston Rockets, Sacramento Kings and New York Knicks have reached agreement on a three-team trade that sends Tracy McGrady(notes) to New York.

The Rockets had struck a deal with the Kings late Wednesday to acquire Kevin Martin(notes), but expanded the trade to include the Knicks at the urging of McGrady’s agent Arn Tellem.

The completed trade will send McGrady and Kings point guard Sergio Rodriguez(notes) to New York. Houston lands Martin, Knicks forwards Jordan Hill(notes) and Jarred Jeffries and draft picks to the Rockets. The Kings will receive Rockets forward Carl Landry(notes) and center Joey Dorsey(notes) and Knicks guard Larry Hughes(notes).

By trading Hill and Jeffries, the Knicks clear enough salary-cap space to potentially allow them to sign two star free agents this summer. In return, the Knicks will swap 2011 draft picks with the Rockets and send them their 2012 first-round selection.

McGrady’s agent, Arn Tellem, helped broker the trade. He also represents several Kings, including rookie star Tyreke Evans(notes). Tellem was involved with Houston and New York in discussions about a two-team trade between them, and sources say he was upset with Wednesday’s deal to Sacramento and worked diligently to include the Knicks in the trade.

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