Basketball legend Isiah Thomas' accuser was offered $250,000 to make her harassment claims disappear, a source close to the Knicks president claimed yesterday.

But Anucha Browne Sanders rejected the deal - saying only a $6.5 million settlement could stop her landing a stunning lawsuit against the Knicks president, the source said.

"She wanted $6.5 million," said the insider.

"The Garden offered $250,000, and that's when she said, 'Okay, we are going to sue.'

"Her lawyer's now saying the $6.5 million demand is not true, but yes, there was negotiation and yes, the $6.5 million figure was very real."

Browne Sanders' lawyer, Kevin Mintzer, said last night he wouldn't comment on settlement discussions, "other than to say that the $250,000 figure is wrong."

The source close to Thomas said an out-of-court settlement was now extremely unlikely.

"If they were going to settle, they would have settled before this suit was filed," he said.

"This is now going to court. It's very embarrassing and not good for anyone. If it was going to be settled, it would have been settled before any of this became public."