Quoting sources close to the teams, sportscaster Stan Fischler, a close friend of Devils owner John McMullen, said a deal might be completed within a couple of months with YankeeNets.

Devils president and general manager Lou Lamoriello refused to comment on the report.

"These things just go around and around," Lamoriello said Wednesday night during the Devils game with the Philadelphia Flyers. "We're staying away from these things like the plague."

Nets president Michael Rowe refused to comment on the report.

The sale of the Devils, who were recently valued at about $135 million, would clear the way for the construction of a new arena in Newark. Both teams currently play at the Continental Airlines Arena in the Meadowlands Sports Complex here, but both have expressed the need for a new modern building to be financially successful.

The Nets and their new owners have expressed a desire in recent years to move to the state's largest city. However, such a move would not be financially responsible with only one team playing in the arena.

McMullen, who moved the Devils from Colorado to New Jersey for the 1982-83 season, wanted to move the team to Hoboken.

Gov. Christie Whitman has said the state will not help build a new arena unless the teams can agree on a site.

McMullen's interest in selling the Devils reportedly is the result of a number of factors. Attendance has declined this season and there does not seem to be strong interest in Hoboken for the team.

McMullen may also have soured on sports ownership after recent attempts to buy an NFL franchise seemingly fell through. His group failed in its bid to buy the Washington Redskins and he seems to be coming up short in an effort to buy the Jets from the estate of the late Leon Hess.