Rookie shooting guard Demetris Nichols refused the Knicks' request to play this season in Italy to solve their roster crunch - a denial that could shorten his Knicks career.

However, the Knicks will improve Nichols' chances of making the club by releasing point guard Dan Dickau in the next three weeks to reduce their roster to 16, according to sources.

"He's not going to go overseas," Nichols's agent, Bill Neff, told The Post. "He wants to play here right away."

The Post reported last month the Knicks were considering sending Nichols to Europe for a year. Neff claims Nichols' former agent, Bill Duffy, had a draft-night agreement with the Knicks that Nichols would play in Italy, prompting Isiah Thomas to trade for his rights.

Nichols fired Duffy last week. The Knicks will extend a tender offer to Nichols by Friday's deadline to retain his rights. Neff said Knicks VP Glen Grunwald told him Nichols may not make the team if he doesn't go to Europe.

Dickau's agent, Mark Bartlestein said, "We've talked, and Isiah is going to do the right thing and help him if it's not going to work out with the Knicks."