Houston looks like it’s on the verge of moving Tracy McGrady. To where specifically remains a question.

ESPN’s Marc Stein is reporting the Rockets are mulling over offers from the New York Knicks and the Chicago Bulls and will likely choose which one later Wednesday.

As of right now, the Knicks appear to be in the lead. They have already agreed to swap Larry Hughes, rookie Jordan Hill, Jared Jeffries, as well as a 2012 first-round pick and the option to switch picks in 2011. However, the Knicks and Rockets are still haggling about the protection on the draft picks the Knicks will send to Houston, which is holding things up. In addition, according to a source, the Knicks are somewhat reluctant to trade so many draft picks. However, if the Knicks make this move, they will suddenly have enough cap space this summer to sign two maximum free agents.

It’s less clear what the Bulls are offering, but according to Stein, the Rockets are interested in Brad Miller and Tyrus Thomas. The Bulls will undoubtedly try to trade either John Salmons or Kirk Hinrich to clear enough cap room to sign a free agent this summer, but it’s unclear whether the Rockets want them.

There remains a third possibility: the three teams trading with each other. Newsday’s Alan Hahn tweeted that the Knicks could make the move for McGrady, then send Al Harrington to Chicago to acquire Thomas. SB Nation’s Knicks blog Posting and Toasting finds this more exciting than the original deal.

Either way, it’s time this whole “Tracy McGrady expiring contract” saga comes to an end. I’m exhausting just writing about it.