The Hornets have traded guard Devin Brown to the Bulls in exchange for center Aaron Gray, according to front office sources.
The trade is expected to become official later on Monday.
New Orleans nearly traded Brown to Minnesota in December, but the deal could not satisfy salary-cap requirements unless Brown agreed to waive a portion of the trade kicker in his contract.
The deal will give the Hornets a small amount of luxury-tax savings, but it also gives them an extra big man off the bench in Gray.
The Hornets will have to make at least one more trade before the Feb. 18 trading deadline to get under the league's $69.9 million luxury-tax threshold.