The New York have elected not to buyout the contract of Chauncey Billups for the 2010-11 season.

The Knicks had until Friday to pick up the option or pay Billups a $3.7 million buyout.

"Carmelo (Anthony), Amare (Stoudemire) and Chauncey are a great nucleus, as we continue to look to improve our team going into the offseason," Knicks president of basketball operation Donnie Walsh said in a statement. "Chauncey is an extremely talented and experienced point guard -- we are very happy to have him back."

The 13-year veteran missed three of the Knicks' four playoff games, all losses, to the Boston Celtics after straining a knee tendon late in Game 1 of their Eastern Conference first-round series.