Details of a feasible trade have not been established, but the two sides remain in ongoing discussions. The news comes in the wake of new Grizzlies CEO Jason Levien proclaiming that the front office was satisfied with the complexion of the current team, and that they would more than likely do nothing as the trade deadline approaches.
Gay, 26, is seen as having high trade value and could net Memphis some quality draft picks in exchange for his services. In addition to Gay, the Raptors are interested in Darrell Arthur.
The Celtics have also reportedly shown interest in Gay, but may not be willing to take on the two-year, $35 million contract that comes with him.
The Grizzlies' objective in moving a cornerstone player like Gay would be to add youth, depth and to balance out a top-heavy roster and salaries. Grizzlies coach Lionel Hollins has publicly lobbied to finish out the season with the roster as it is.