The Raptors have been talking with the Rockets about prospective Lowry deals for weeks, sources said, and seriously discussed the prospect of swapping the versatile guard for Toronto's No. 8 pick in last month's draft.
Lowry, a seventh-year pro, averaged 14.3 points and 6.6 assists per games last year for the Rockets.
ESPN.com reported Sunday the Raptors were still interested in trading for Lowry even if they had convinced Canadian icon Steve Nash to accept their three-year, $36 million offer in free agency. When Nash opted to urge the Phoenix Suns to instead get him to the Los Angeles Lakers via a sign-and-trade deal, sources say Toronto ramped up its pursuit of Lowry.