The Kings have agreed to trade first-round draft pick Thomas Robinson, swingman Francisco Garcia, forward Tyler Honeycutt and a second-round pick to the Houston Rockets.
The Rockets have agreed to send forward Patrick Patterson, center Cole Aldrich and guard Toney Douglas to the Kings.
Yahoo! Sports reports the deal is part of a three-team trade that will also send Houston forward Marcus Morris to Phoenix.
The Kings are waiting on the trade call with the NBA before announcing the deal, so it might not be official until Thursday.
Robinson was the fifth overall pick in the 2012 NBA Draft. The Kings were ecstatic to select him as they had him rated No. 2 on their draft board.