White is expected to report to the team's developmental league affiliate on Feb. 11.
White has been inactive all season as he's been working with Houston on an arrangement to balance the demands of his anxiety disorder and rigors of an NBA schedule.
White temporarily left the team in November over a dispute over his "generalized anxiety disorder" -- which reportedly includes his fear of flying — the main way of transportation in the NBA.
At the time, the 6-foot-8 White claimed that he wouldn't play until he and the Rockets agreed on a mental health protocol that didn't jeopardize his safety.
In November, White said he was willing to leave the NBA if the issues concerning his mental health weren't resolved.
According to ESPN, the Rockets said Saturday than an agreement had been reached to "addresses the major issues" on both sides, and that the NBA and the player's union each approved the settlement.
The Rockets suspended White earlier this month when he reportedly refused to report to to Rio Grande Valley in the National Basketball Development League.