The Harris County-Houston Sports Authority agreed Wednesday to pay $1.5 million to buy the Rockets out of their Compaq Center lease, clearing the way for the team to open the 2003-04 NBA season in the new downtown arena.

The Rockets, meanwhile, have been negotiating with three companies for the arena's naming rights and could seal a deal by the middle of next month, said sports authority chairman Billy Burge.

"The sense I get is that it might be an international company, as opposed to one that is based in Houston," Burge said.

The lease buyout resolves a dispute involving the sports authority, the Rockets and operators of Compaq Center that has been going on for more than a year. Naming rights are one of the major issues officials hope to have settled before the new arena opens.

The Rockets must seal a deal before the end of July if signs installed on the arena for a Sept. 4 ribbon cutting are to carry the name of the company that buys the naming rights.