Clanton said last week that the surgery would involve placing screws across the bone to hold it together with a recovery time of about four months. The second option was to treat it with a cast and crutches.
Clanton also said last week that he doesn't expect the injury to keep Yao from playing for China in the Olympics in Beijing in August.
The Rockets have won 14 straight games, including the two since Yao has been injured.
Yao was averaging 22 points and 10.8 rebounds this season. His decision was first reported today in the Houston Chronicle's online edition.