Antonio Gonzalez of the Associated Press reports that Smith has confirmed that the Magic have discussed a trade to bring Arenas to Orlando this week, but said that nothing is imminent. SB Nation blog Orlando Pinstriped Post first reported the possibility of a Gilbert Arenas trade back on Dec. 1.
Smith said that while the talks are serious, nothing is imminent.
Back in early December, Smith denied current talks with the Wizards centering on Arenas. At that point, Smith said that he had last talked to the Wizards about Arenas in June. The pair -- Smith and Arenas -- have a relationship dating back to their days with the Golden State Warriors, where Smith was an assistant general manager and Arenas an upstart star-in-the-making out of the second round. Smith has served as a mentor to Arenas in the years since.
The Magic would apparently give up either Rashard Lewis or Vince Carter to make salaries match. The Suns have also been rumored to be involved, with Hedo Turkoglu potentially returning to the Magic, where he helped lead the team to the 2009 NBA Finals.