The former No. 1 overall pick recently exercised his $47.4-million player option for next season but will give back $6.5 million to become an unrestricted free agent, ESPN's Tim MacMahon reports.
Wall hasn't played in an NBA game in more than a year. He averaged 20.6 points, 6.9 assists, and 1.1 steals over 40 appearances with the Rockets.
The Kentucky product would provide the Clippers with a proven playmaker. Los Angeles tied for 16th in the Association last season with 24 assists per contest.
Wall was a perennial All-Star with the Washington Wizards before sustaining a series of serious injuries. He earned an NBA All-Defensive second-team selection in 2015 and made the All-NBA third team in 2017.
Wall is the Wizards' all-time leader in assists and steals.