Center Josh Powell was in Houston on Tuesday for his physical, which he passed, and signed his contract with the Rockets.
Powell's deal is for rest of this season and next, but year two of his contract is not guaranteed.
Sources told FOX 26 Sports Powell received his clearance from FIBA, world governing body for basketball, late Monday night to return to the NBA and sign with the Rockets.
Powell, who has been with six different NBA teams, most recently with the Atlanta Hawks in 2011, has been playing in the Philippines.
"I'm excited," Powell said in an interview with FOX 26 Sports. "I'm Definitely grateful for the opportunity, being able to play for an organization like this."
Because he will be under contract by the Wednesday deadline, Powell is eligible to play for the Rockets in the playoffs.
"It's a blessing to be able to come now, especially during playoff time, when it's time to get rocking and rolling," Powell said.
Along with the Hawks, Powell has also played for the Dallas Mavericks, Indiana Pacers, Golden State Warriors, Los Angeles Clippers and Lakers.
Powell was with the Lakers when they won NBA championships in 2009 and 2010.
To clear a spot on the roster for Powell the Rockets waived Dexter Pittman, who they signed last week.
Powell is already with the Rockets in New Orleans where they wrap up the regular season on Wednesday