Papanikolaou has agreed on a two-year deal with the Houston Rockets, ESPN reports.

Papanikolaou will be able to play in Houston this season because the Rockets decided to employ a mid-level exception on the forward. He'll likely see playing time behind Trevor Ariza after the departure of Chandler Parsons created a void at small forward in Houston.

FC Barcelona's Kostas Papanikolaou and the Rockets could not agree to terms on a contract and he will stay in Spain next season.

Papanikolaou and the Rockets were thought to be close on an agreement, but contract talks hit a snag and the Greek forward will not be making the leap to the NBA. Reports were that he was being offered a 2-year deal worth between $4 and $5 million. The Rockets continually struck this offseason, missing out on Chris Bosh, Carmelo Anthony, and losing Chandler Parsons. Now that the news has come out that Papanikolaou will be staying overseas, this may be another blow to their championship aspirations.

The Houston Rockets are in talks to sign Kostas Papanikolaou.

The Rockets acquired Papanikolaou's rights in the Thomas Robinson trade with the Trail Blazers and are reportedly moving closer to inking the Greek forward to a two-year deal. The 22-year-old has played well with Olympiakos of the Greek League, but will need some seasoning in the NBA before he appears on fantasy owners' radars.

Rockets draft pick Kostas Papanikolaou said that he may leave Greece for the NBA this summer, and he's willing to take less money in Houston.

"I will need a balanced combination between the contract I will be offered and my role in a NBA team, in order to sign there," said the 22-year-old forward. "I play in one of the best teams in Europe. I don't want just to sign in the NBA without having a place in a team's rotation. I don't want something like a guarantee, I know how things work in the States. But I want to be sure that I will get an equal chance."

The Rockets are not expected to sign or trade the draft rights to Kostas Papanikolaou.

He made an impact with Olympiakos overseas and and his name has popped up in a few smaller NBA deals over the years. Papanikolaou is still just 22 years old, but he won't be making an impact in the NBA just yet.

Kostas Papanikolaou's draft rights were traded from the Blazers to the Rockets as part of Sunday's deal for Thomas Robinson.

Papanikolaou, a 6'9" small forward, won "Rising Stars" honors in a featured role for Olympiakos in Greece last season. He simply wasn't part of the Blazers' plans and it's unclear if or when the Rockets intend to bring him to the NBA.

The Knicks have offered a future second-round pick and "future considerations" to the Blazers for the draft rights to Kostas Papanikolaou.

Like with all trade rumors, don't take it as fact. The Knicks drafted the small forward last June in the second round and traded him to Portland, but now apparently they're interested in bringing him back. The report cites sources as saying Papanikolaou is being shopped, but his agent already said that his client expected a trade.

Kostas Papanikolaou's agent expects the Blazers to trade his client.

"As of now, we don't have any sign that leads us to believe that Kostas will go to Portland," Sfairopoulos told CSNNW.com. "Therefore, we believe that he will not be in the plans of the organization next season and probably will be traded." He won the Rising Stars Trophy for 2012/13 while playing for Olympiacos, but it's not clear when or if he'll come to the NBA.

Kostas Papanikolaou will decide between playing for Olympiacos in Europe or going to the NBA next season.

No other European team is in consideration for Papanikolaou, who won the Rising Star trophy in Europe this season. His rights were acquired by Portland in the Raymond Felton sign-and-trade deal.