The Rockets plan to immediately insert Faried into the lineup as a stopgap big man to help replace some of the defense and rebounding lost with starting center Clint Capela lost for several weeks following surgery on his right thumb.
Faried will be released Saturday, sources said, with his $13.7 million salary clearing waivers on Monday.
The Rockets expect to have Faried in the lineup Monday when they play Philadelphia, league sources said.
Brooklyn acquired Faried in the offseason, but he struggled to find a role with the younger core of the Nets. Faried was a starter for most of his seven seasons with Denver, averaging 11.3 points and 8.1 rebounds.
Faried has been a tenacious rebounder and defender in his career, and he'll share center minutes with Nene until Capela's return to the Rockets lineup.