Marc Stein from ESPN is reporting that the Los Angeles Lakers have pulled out of the proposed three-team trade that would have brought Chris Paul to California.

This new development is coming on the heels of a revised trade proposal between the Lakers, New Orleans Hornets and Houston Rockets that was originally nixed by NBA commissioner David Stern.

Adrian Wojnarowski of Yahoo! Sports reports that neither the Lakers nor the Hornets will be pursuing a direct trade to obtain Chris Paul. Sources are saying that the Hornets would be able to obtain the pieces they are looking for from either team individually.The revised trade proposal would have stocked New Orleans with younger players and draft picks to prepare for the future of the team.

It's not currently clear why the Lakers decided to pull out of the trade, but their withdrawal is key to the entire deal falling apart.

For all news and information regarding the Los Angeles Lakers, please visit Silver Screen and Roll.