The New York Knicks plan on picking up their third-year contract option on Shane Larkin.

There was some initial uncertainty from the Knicks on the decision regarding Larkin's $1.67 million contract for 15-16.

Phil Jackson plans on using cap space in 2015 and has been cautious on committing to guaranteed money.

In the preseason, Larkin has averaged 2.5 points and 1.5 assists in 20 minutes per game for New York.