Sources told ESPN that Blatt, who also has interviewed with the New York Knicks and Sacramento Kings this offseason, is meeting with Rockets officials as Houston continues its planned broad search for a full-time successor to Kevin McHale and interim coach J.B. Bickerstaff.
The Rockets will interview Kenny Smith on Tuesday, a source said. The team also has scheduled interviews with former Suns head coach Jeff Hornacek and Hornets assistant coach Stephen Silas.
The Rockets already have interviewed four candidates: Bickerstaff, Chris Finch, Sam Cassell and Mike D'Antoni.
Bickerstaff, who took over for McHale 11 games into the season, withdrew his name from consideration Wednesday.
Blatt guided the Cavaliers to the NBA Finals last season before his abrupt firing in January with the Cavs leading the East at 30-11. No coach in league history had been dismissed in-season with a higher winning percentage than Blatt's .732.
The Rockets have yet to present any of the candidates to star guard James Harden, according to a source.
Rockets owner Leslie Alexander said they would talk to Harden during the coaching search and free-agency process. It appears in the early stages the organization has yet to talk to Harden.
But there's a feeling they will at some point before a final decision is made.
ESPN's Ian Begley contributed to this report.