J.R. Smith has agreed to sign a two-year, $2.8 million contract with the Knicks.
The second season is a player option.
"I have decided to re-sign with the Knicks. I just felt that, despite my other options, New York is the best situation for me," Smith said in a statement released to ESPNNewYork.com. "Coach (Mike) Woodson showed a lot of faith and trust in me last season, as did (Knicks owner) Mr. (James) Dolan and the organization.
"My teammates are great to play with and New York fans are the best. I can't wait to get started."
Smith is expected to be New York's starting shooting guard with Landry Fields all but certain to end up with the Raptors.