The 6-foot-8 White, the 16th overall pick in the last draft, has been on the inactive list all season as he worked on an arrangement with the team to balance his acknowledged anxiety disorder with the demands of the NBA schedule.
The Rockets said Saturday they had reached an agreement that "addresses the major issues" for the two sides. The league and the players' union have both approved the settlement, the Rockets said.
White was vocal on Twitter throughout the saga, often criticizing the team. The Rockets suspended White on Jan. 6 after he refused to accept an assignment to Rio Grande Valley in the NBDL.