The Knicks have acquired Raymond Felton and Kurt Thomas from the Blazers in exchange for Jared Jeffries and Dan Gadzuric.
Felton's contract will be worth $10 million over three seasons, according to a Marc J. Spears.
Both Felton and Thomas previously played for New York.
Felton and Jeffries will be dealt via sign-and-trade as both players are free agents.
It is unclear how the acquisition of Felton will impact the Knicks' decision on whether to match Jeremy Lin's offer sheet with the Rockets.