From ESPN:

The Houston Rockets have agreed to terms on a deal to acquire veteran center Marcus Camby from the Portland Trail Blazers, according to sources with knowledge of the deal.

The deal that has been submitted to the league office for approval, sources said, calls for Houston to send guard Jonny Flynn, center Hasheem Thabeet and a future second-round pick to the Blazers for Camby, who has maintained an offseason residence in Houston for some time and has always liked the idea of playing for the Rockets.