The Toronto Raptors are trading point guard Dennis Schröder and forward Thaddeus Young to the Brooklyn Nets for guard Spencer Dinwiddie, sources told Yahoo Sports' Jake Fischer, confirming a report from ESPN's Adrian Wojnarowski.

The Raptors are in turn waiving Dinwiddie in a transaction that clears up salary cap space with Dinwiddie's expiring contract, The Athletic's Shams Charania reports. Wojnarowski reports that the Raptors are holding on to Bruce Brown Jr., who was acquired from the Indiana Pacers in January and reported as a trade candidate ahead of Thursday's trade deadline.

The Nets, meanwhile, are trading veteran guard Royce O'Neale to the Phoenix Suns for a package including three second-round picks, The Athletic's Shams Charania reports.

What does this mean for Raptors?

The deal for Dinwiddie is the fourth this season for the Raptors, who traded franchise cornerstones Pascal Siakam and OG Anunoby in transactions prior to Thursday's NBA trade deadline, signifying a rebuild and youth movement in Toronto. The Raptors got 23-year-old RJ Barrett and 24-year-old Immanuel Quickley from the New York Knicks in exchange for Anunoby.

They received three first-round draft picks in addition to Brown from the Indiana Pacers in exchange for Siakam. Earlier Thursday, the Raptors also reportedly acquired Kelly Olynyk and Ochai Agbaji from the Jazz. Agbaji, 23, was a first-round pick out of Kansas in 2022 and provides Toronto with another young player with upside playing on a rookie contract.

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The acquisition of 30-year-old Dinwiddie provided the Raptors with an expiring contract. The veteran guard was playing on the final year of a three-year, $54 million deal and will become an unrestricted free agent in the offseason. By waiving Dinwiddie, the Raptors avoid paying a $1.5 million bonus for games played, Charania reports.

Dinwiddie started 48 games with the Nets this season, averaging 12.6 points, six assists and 3.3 rebounds per game while shooting 39.1% from the floor and 32% from 3-point distance. He'll hit waivers as a target for contending teams seeking backcourt help.

The 18-33 Raptors are in 12th place in the East and don't project to contend for the play-in tournament.

The Nets receive a pair of veteran players in exchange for Dinwiddie. Schröder, 30, is averaging 13.7 points, 6.1 assists and 2.7 rebounds a game this season while shooting 44.2% from the floor and 35% from 3-point distance. He's playing on the first year of a two-year, $25.4 million contract.

Young, 35, has averaged five points, 3.3 rebounds and 2.2 assists in 23 minutes per game this season. He'll be a free agent in the offseason at the conclusion of a two-year, $16 million contract.

The 20-30 Nets are 1.5 games behind the 10th-place Atlanta Hawks and the final spot in the play-in tournament.