UPDATE: According to multiple reports, a deal in principle has been reached between the Nets and Kings:

Sacramento Kings guard Marcus Thorton is on his way to Brooklyn, according to Yahoo! Sports. In exchange for Jason Terry and Reggie Evans, the Nets would be acquiring Thorton:

Sacramento and Brooklyn were still discussing the possibility of a future conditional draft pick to the Nets, league sources said, but the structure of a deal is in place.

The Nets’ deal with Sacramento doesn’t preclude them from also completing a deal for the Los Angeles Lakers’ Jordan Hill using the Nets’ Disabled Player Exception, sources said.

Thornton’s contract has two years and nearly $17 million remaining through the 2014-15 season. Terry, 36, has $10.7 million left on his deal, including $5.4 million next season.

Brooklyn has discussed a deal involving Terry for Cleveland’s Jarrett Jack, too, but sources say that is an unlikely scenario based on the length of Jack’s contract, which guarantees a total of $12.6 million in the final two years of his deal through the 2015-16 season. The Cavaliers are interested in getting out of Jack’s deal, and would try to move Terry to a third team, league sources said.

The Nets’ $5.25 million Disabled Player Exception can be used in a trade or free-agent transaction until March 10 and they can use a portion of it to absorb the remaining $3.5 million on Hill’s expiring contract.