Knicks assistant coach Herb Williams is on the Indiana Pacers' list of candidates to replace Rick Carlisle as head coach.

Carlisle was fired on Wednesday after the Pacers posted a 35-47 record, their worst season since 1988-89.

Indiana is also said to be interested in former Pacer players Sam Mitchell and Mark Jackson.

The Indiana Pacers announced Wednesday that Rick Carlisle will not return as head coach, but will have the option to return to the team in another capacity.

In four seasons as Pacers coach, Carlisle compiled a 181-147 record (.552 winning percentage). The Pacers made the NBA playoffs in three of the four seasons and reached the Eastern Conference Finals in Carlisle?s first year, 2003-04. That same season, the Pacers posted a 61-21 record, the best in franchise history.

?Rick?s contributions to this franchise, first as an assistant coach, then as a head coach, have been tremendous,? said President of Basketball Operations Larry Bird. ?This is a mutual decision and we?re happy that Rick will consider remaining with the franchise.?

?My wife, Donna, and I are very grateful to have had the opportunity to be part of a great organization like the Indiana Pacers for seven of the last 10 years,? said Carlisle. ?We wish to thank Mel and Herb Simon, Larry Bird, Donnie Walsh and our players for a great experience. This is a class organization with great leadership and a loyal fan base that?s second to none.?

The Pacers? search for a new coach will begin immediately.

The Pacers suffered a disappointing season with a bad second half that saw them drop out of the playoffs.

Sam Mitchell famously doesn't have a contract for next season, despite being named Coach of the Year.

He could be a coveted commodity on the open market, as Charlotte and Indiana are expected to be suitors.  

"Most likely," Chris Bosh said yesterday when asked if he believes Mitchell will be back. "I mean, I don't have any sense (of the situation). Only the future can tell. But in my opinion, everything's going well. He'll probably be back."

Jonathan Bender has attempted nearly every rehabilitation method known to man and is ready to move on with his life.

"I depressed myself to death then," said Bender of his final rehab stint. "I was about to go psycho. But after a minute it's like, What are you going to do? Keep killing yourself or just let it be?

"If it's going to happen for you, it's going to happen. If it's not, it's not."

Jermaine O'Neal will have surgery next week to repair torn cartilage in his left knee. O'Neal suffered the injury Feb. 3 at Memphis.

"The doctors said I needed surgery, but I chose to stay with the team and make a push (for the playoffs)," O'Neal said. "I literally played on one leg for two months. It was a difficult situation, but that's what it was."

O'Neal said he anticipates a rehabilitation period of 4-6 weeks.

Pacers CEO Donnie Walsh said there will be meetings in the coming week regarding the franchise's direction after the Pacers missed the playoffs for the first time since the 1996-97 season.

"We are very disappointed with the season that concludes tonight," Walsh said in a statement.

Jermaine O'Neal has talked repeatedly of the possibility of seeking a trade but has recently toned down his position.

"I want to retire here, but I understand the business part of it," he said. "The business part is brutal. If they feel they can't rebuild the team, they have to tear the team down."

Vince Carter scored 35 points to help the Nets beat the Pacers 111-107 on Sunday afternoon to put the Pacers on the brink of elimination from the Eastern Conference playoff picture.

Bostjan Nachbar scored 25 points and shot 6-for-6 from 3-point range and Jason Kidd had 12 points, 10 assists and eight rebounds for the Nets.

Jermaine O'Neal led the Pacers with 20 points and Troy Murphy and Danny Granger each scored 17.

The Washington Wizards lost to the New Jersey Nets on Tuesday night 96-92, but with Indiana losing to Philadelphia 90-86 they still managed to clinch a playoff spot.

Only two positions remain in the East, with New Jersey and Orlando currently occupying the seventh and eighth placements.

One win by Orlando or one loss by New York will officially eliminate the Knicks from the playoff race, leaving the final two positions to either the Magic, Nets or Pacers.

Darrell Armstrong will hold off trading in his sneakers for a suit and tie for at least one more season.

After saying a number of times he was leaning toward putting off retirement, the veteran Indiana Pacers guard made it official Friday that he'll return for another season, his 14th.

"The best thing about this year is I'm playing 12-to-15 minutes a night and my body feels good," Armstrong said. "That's the biggest thing. I still have my energy. I always told myself if I can't pick up full court and defend guys the way I've always done, it's time for me to leave the game."

"Guys like Darrell come along once or twice a decade," Pacers coach Rick Carlisle said. "We've been fortunate to have two guys in our franchise, him and Reggie Miller, that have played at a high level well into their late 30s. I have no doubt Darrell will be great for at least another year, maybe even longer."