The reported deal, which is expected to be finalized Monday after a trade call with the league, will also see the Raptors send forward Quincy Acy and centre Aaron Gray to the Kings in exchange for guards Greivis Vasquez and John Salmons, along with forwards Patrick Patterson and Chuck Hayes.
None of the players involved in the reported deal are available for the Raptors tonight against the Lakers at Staples Center, but the team has not made any official comment on a move.
Gay has averaged 19.4 points, 7.4 rebounds and 2.2 assists per game for the Raptors in 18 games this season, but has struggled from the field, shooting .388 on fewer than 19 field goal attempts per game.
If confirmed, the Raptors would require a follow up move to get under the 15-man roster limit.
Much more to come on this developing story. Check out reaction from Aaron Gray and some of the Raptors players to the news below.