The University of Houston granted releases to both forward TaShawn Thomas and guard Danuel House.
The decision comes one day after UH held hearings with both players concerning their requests for releases that had been denied by the school.
However, the releases come with stipulations, one of which will be appealed by both players.
UH has told them they cannot transfer to any schools within the American Athletic Conference, to any institution scheduled to leave or join the AAC or to any school on UH's schedule for the next two years.
The stipulation that is an issue for both players is that UH also mandated that neither player be able to transfer to any Division 1 school within the State of Texas.
"I will appeal that one," House said in an interview with FOX 26 Sports. "I feel they don't want me to be really successful in the state of Texas unless I am at UH, and it really hurts my heart that they feel that way."
Houston businessman Erskine McDaniel, who is acting as a spokesman for the families of both players, said the players will appeal to the NCAA to remove the stipulation that they cannot transfer to any school within the state of Texas.
He also said the two players will appeal to the NCAA for a waiver that will allow them to play immediately.
"I wanted to able to look at schools in Texas so I can stay closer to my family," Thomas said.
"I'm going to appeal that."
Thomas has one year of eligibility left, while House has two years.
They were the University of Houston's top two scorers this past season.
Both requested releases from UH after James Dickey stepped down as head coach last month and prior to the school replacing him with Kelvin Sampson.
Mack Rhoades, UH's vice president for intercollegiate athletics, was not available for comment.