"It's D-Day for Tracy McGrady as the Knicks and Bulls compete for T-Mac's services with the Rockets' decision likely coming today, according to three sources.

Negotiations between the Knicks and Rockets over McGrady went back and forth yesterday -- with early indications the Bulls were in the lead. But late last night a report from SI.com named the Knicks as frontrunners for McGrady and ready to finalize the deal today.

That deal would bring cap heaven for the Knicks, sending rookie Jordan Hill and veteran Jared Jeffries to Houston, along with Larry Hughes, and freeing an additional $9.4 million in cap space for the Knicks to sign two free agents to maximum deals this summer. Picks would also be involved, with the Knicks giving up at least their first-round pick in 2012, and the Knicks would take back Brian Cook and Joey Dorsey.

A day after the Knicks seemed on the verge of pulling off a T-Mac deal, the Rockets began mulling a serious offer from the Bulls, according to the sources.

The Chicago Tribune was reporting the Bulls are offering Tyrus Thomas, Brad Miller and either John Salmons or Kirk Hinrich for McGrady."