According to ESPN.com's Adrian Wojnarowski, Anthony and the Rockets "are discussing his role and how they might still be able to proceed together for the rest of the season." Wojnarowski described the talks as "fluid."
Anthony, 34, was listed as out Saturday against the San Antonio Spurs because of an illness, although Shams Charania of The Athletic and Stadium reported the absence may have been a joint decision since he was a full participant in Friday's practice.
Charania added the sides "are seriously weighing his roster situation."
The New York Times' Marc Stein provided additional details:
Marc Stein @TheSteinLine
Asked tonight if the Rockets were soon parting company with Carmelo Anthony, one source with knowledge of Houston’s thinking insisted the team is “not letting Melo go.” Yet it appears we must stay tuned amid multiple reports about ongoing talks with Melo on his role going forward
Through his first 10 appearances, only two of which have been starts, the 10-time All-Star is averaging 13.4 points and 5.4 rebounds per game on 40.5 percent shooting from the field, including 32.8 percent from three.
Additionally, the Rockets have been outscored by nine points per 100 possessions with Anthony on the floor so far this season. Conversely, they have outscored opponents by 1.8 points per 100 possessions when he's been on the bench.
Anthony's defensive rating of 111.0 is also the worst among all Rockets players who have logged at least 100 minutes this season.
In the event the two sides can't find a comfortable middle ground, James Ennis and P.J. Tucker would assume even bigger roles on the wing.
Stats courtesy of NBA.com.