AUGUST 20TH, 1:32pm: The Rockets have officially signed Delfino, the team announced today in a press release.
AUGUST 15TH, 2:57pm: Delfino's deal with the Rockets is worth $3MM in year one, with a second-year option also worth $3MM, according to Jonathan Feigen of the Houston Chronicle (Twitter links). Since that amount exceeds the $2.575MM room exception, Houston is using leftover cap space to complete the deal.
AUGUST 13TH, 7:29pm: The Rockets have agreed to a two-year deal with swingman Carlos Delfino that includes a team option for 2013-14, tweets Jonathan Feigen of the Houston Chronicle. It's unclear how much the contract is worth, but it's likely for more than the minimum salary, as last week's reports suggested. The Rockets have their $2.575MM room exception available, so the deal could be for all or most of that amount, but that's just my speculation.
Marc Stein of ESPN.com reported Thursday that the Rockets were "actively chasing" Delfino, who said he would sign with a team after the Olympics. The Celtics, Hawks, Pacers and Cavaliers were all reportedly in the running for Delfino at times this summer. The 6'6" Argentinian seemingly had his heart set on a multiyear deal, so the two-year pact with the Rockets offers a compromise of sorts, giving the team an out after this season.
Delfino, who spent the last three seasons with the Bucks, saw his role in the offense diminish last year after two straight seasons of double-figure scoring. His points per game went from 11.5 in 2010/11 to 9.0 in 2011/12, as his shots were cut from 10.5 a game to 8.4. Delfino played with an injured groin the last month of the season that required surgery in May, and was disappointed the Bucks didn't show more interest in re-signing him after he played hurt for them. The Bucks held his Bird rights, so they would have had no trouble bringing him back if they had interest. Milwaukee originally brought him aboard for three years and $10.5MM on a sign-and-trade from the Raptors in 2009.
The addition of Delfino gives the Rockets 21 players on the roster, Zach Lowe of SI.com notes via Twitter. That would seem to make them prime candidates to pull off a trade sometime between now and the start of the season.