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INDIANAPOLIS - The Indiana Pacers are considering a sign-and-trade deal with Sacramento that would send free-agent center Brad Miller to the Kings.

ESPN.com reported the Pacers would sign Miller to a multi-year deal and send him to the Kings for center Scot Pollard. Also as part of the trade, the San Antonio Spurs would receive Hedo Turkoglu from the Kings and Ron Mercer from the Pacers.

The deal would have to involve at least one more player to satisfy salary-cap requirements, and it was not immediately known whom the Spurs would include.

"There is a deal in the works, but we're not ready to make an announcement yet," Pacers CEO Donnie Walsh said.

Brad Miller, who went undrafted out of Purdue, averaged 13.1 points and 8.3 rebounds and made his first All-Star appearance last season.

GRIZZLIES: Memphis signed swingman James Posey to an offer sheet Wednesday.

Posey, a fifth-year veteran who averaged 10.8 points a game last season, is a restricted free agent with the Houston Rockets. Houston has 15 days to match the offer.

After starring at Xavier University, Posey was named to the 1999-00 All-Rookie team. He spent three seasons plus part of last year with the Denver Nuggets before being traded to Houston in December.

The Grizzlies signed rookie free agent Theron Smith of Ball State to a two-year deal last week.

ROCKETS: Center Yao Ming broke a bone above his left eye when he collided with another player while practicing for the Chinese national team earlier this week and will need about a week to recover.

Yao received eight stitches above the eye and is expected to miss several of the national team's five exhibition games against a traveling NBA All-Star team.

MAGIC: Free-agent point guard Tyronn Lue signed after agreeing to terms on a $3-million, two-year contract Friday.

Lue averaged career highs of 8.6 points and 3.5 assists as a reserve for Washington last season.