Sources: Joe Smith to Lakers

The New Jersey Nets have traded Terrence Williams to the Houston Rockets in a three-way deal that will land them Los Angeles Lakers guard Sasha Vujacic and a pair of first-round draft picks, sources confirmed to ESPN.com.

The trade, which has been agreed upon in principle, will also send Nets veteran power forward Joe Smith to the Lakers, while New Jersey will receive Los Angeles' 2011 first-round pick and Houston's 2012 lottery-protected first rounder, sources said.

The acquisition of the two first-round picks now gives the Nets a total of five first-rounders over the next two seasons. Aside from their own 2011 and 2012 firsts, New Jersey also has the Golden State Warriors' lottery-protected 2011 first-round pick, which was acquired in the Marcus Williams trade back in 2008.

The deal cannot be finalized until Dec. 15, according to NBA rules that prohibit offseason signees from being traded -- and Smith fits that bill.

Williams was announced as inactive by Nets head coach Avery Johnson before Tuesday night's game, but Johnson would not divulge why. When asked if it was because of bad behavior, which has caused Johnson to place Williams on the inactive list earlier this season, he responded, "no."