The Rockets and Wall, 31, reached a mutual decision for the veteran guard not to play last season with Houston in the early stages of a rebuild.
Wall averaged 20.6 points and 6.9 assists in 40 games for the Rockets in 2020-21, proving he still could perform at a high level after missing the previous season and a half because of heel surgery and a torn Achilles tendon. He spent parts of last season with the Rockets, participating in practices and sitting on the bench during games, and trained on his own in Miami the rest of the time.
He was traded to Houston along with a future first-round pick for Russell Westbrook in December 2020 after spending the first 11 years of his career with the Washington Wizards, who selected him with the No. 1 pick in the 2010 draft.
Wall, who has career averages of 19.1 points and 9.1 assists, would fill the Clippers' need for a playmaker on a team that has championship aspirations, with Kawhi Leonard returning after missing the 2021-22 season while recovering from a partially torn ACL in his right knee. Reggie Jackson averaged 16.8 points and 4.8 assists as LA's starting point guard last season, when the Clippers went 42-40 and were eliminated in a play-in game.
ESPN's Adrian Wojnarowski and Tim MacMahon contributed to this report.