"Marcus is extremely excited to be coming back to the Rockets," Camby's agent, Rick Kaplan, said in a text message to Houston's KRIV-TV, a Fox affiliate. "He believes he can add vetreran leadership to a potent young core that can compete for the NBA title. It is a great opportunity for him and huge plus for the Rockets."
Camby became a free agent earlier this month when the Toronto Raptors bought out his contract. Camby had been owed $7.5 million over the final two years of his previous deal.
The 39-year-old center appeared in just 24 games last season for the Knicks, averaging 1.8 points per game.
Camby was picked second overall by Toronto in the 1996 draft and has played 973 games during his career. He played in 19 games for the Rockets in 2011-12.