According to the New York Post, the team is looking to deal forward Jared Jeffries before the Feb. 18 NBA trade deadline to gain salary cap relief.
The 28-year-old small forward has averaged less than six points per game in his NBA career and has a player option worth nearly $7 million for next season.
The Knicks are hoping to deal Jeffries for a player with an expiring contract, someone like Tracy McGrady. A Jeffries-McGrady swap could work if the Knicks included Larry Hughes.
The move could benefit the Knicks. In McGrady, the team would acquire a seven-time All-Star who has twice led the league in points per game average. In addition, McGrady's expiring contract means the Knicks maintain their financial flexibility.
Knicks coach Mike D'Antoni acknowledges that the team is searching for trade opportunities, but will only make a move if it fits into New York?s long-term vision.
"The key is it's got to fit into the plan," D'Antoni told the New York Post. "It's got to be right. I think we as an organization, we're looking all the time, trying to better the team without messing up the long-term plan. It's a tricky thing to do."
The Knicks have options regardless of whether they make a deal before this season?s trade deadline.
The team has only four players under contract for next season, although Jeffries and center Eddy Curry hold player options.
When you're considering NBA superstars like James and Wade in free agency, a team can never have too much salary cap flexibility.