Chris Paul free agency, Chris Paul
Nov 29, 2016; Brooklyn, NY, USA; Los Angeles Clippers point guard Chris Paul (3) drives against the Brooklyn Nets during the second quarter at Barclays Center. USA TODAY Sports / Brad Penner

The Houston Rockets believe they have "a serious chance" of signing free agent point Chris Paul when the NBA Free Agency 2017 period begins on July 1. Earlier this week, Paul declined his US$24 million (AU$31 million) Player Option for the 2017-18 season to become an unrestricted free agent.

The Los Angeles Clippers, who own Paul's Bird Rights, are still in prime position to re-sign the star guard. They can offer Paul a five-year maximum-level contract worth US$205 million (AU$275 million). Paul would be leaving approximately US$40 million (AU$53 million) on the table by going elsewhere this offseason. In recent months, there has been a lot of chatter about Paul potentially joining the San Antonio Spurs.

The Rockets have now emerged as another credible threat to pry Paul away from Los Angeles. According to ESPN's Chris Haynes, Houston has a "serious chance of luring Chris Paul away from the Los Angeles Clippers." In an attempt to clear the necessary cap space for Paul and other free agents, the Rockets are shopping the trio of Patrick Beverley, Ryan Anderson and Lou Williams, as reported earlier.

Chris Paul free agency: Clippers front office has a busy summer

With Blake Griffin and J.J. Redick also approaching free agency, the Clippers could potentially hit the reset button and start over next season. After acquiring the legendary Jerry West in a front office role, league insiders expect the Clippers to tear down the roster and build around younger players.

Meanwhile, Adrian Wojnarowski of The Vertical recently revealed that the New York Knicks were also in the running for Chris Paul until the spat between team president Phil Jackson and franchise star Carmelo Anthony became public knowledge. The alleged rift has cautioned free agents against joining New York.

"Phil Jackson and Carmelo (Anthony) should have been walking arm in arm to go greet Chris Paul for the forthcoming free agency period. There's an opportunity to get Paul on this market. He may stay in Los Angeles and part of it might be because there's nowhere else that makes perfect sense that is worth giving up the money for, but he may go. New York should have been in the Paul conversation," Wojnarowski said in his podcast last Monday.

"Whatever you think of Carmelo, he's extremely popular with that elite group of players. I think Phil has done such a disservice to the chances the Knicks have of getting involved with anybody. Carmelo is a cautionary tale of why you don't want to go there," added the NBA insider.

There is also the realistic possibility of Paul and Anthony joining forces in Los Angeles if the Clippers and Knicks re-engage in a potential Carmelo Anthony trade. The Knicks have very little leverage in the potential trade and are expected to settle for draft picks or cap relief instead of demanding an all-star calibre player in return. Paul averaged 18.1 points, 9.2 assists and 5.0 rebounds in his 12th NBA season. Stay tuned for the latest on Chris Paul free agency and the NBA Free Agency 2017.