A source told ESPN that in recent days the Knicks have made significant progress putting together an offer that could land Carmelo Anthony in New York.
For two weeks, the Knicks have been working on a deal that would include Anthony Randolph, Eddy Curry and a first-round draft pick acquired from a third team. New York is also now more willing to part with Danilo Gallinari.
The source indicated that the Knicks are confident they can use one of their assets -- likely either Randolph or Gallinari -- in a three-team trade that would send a player to Denver whom the Nuggets prefer. This was a recent impediment to completing the deal that the Knicks feel can now be overcome.
The source said that the Bulls remain in the trade discussions surrounding Anthony but Joakim Noah's recent contract extension would preclude his inclusion in Chicago's offer. Anthony is known to have the Knicks and Bulls at the top of his wish list.
The Nets have reportedly faded from their pursuit of Anthony, with New Jersey now disinclined to deal the third overall pick, Derrick Favors.
The Knicks may have to part with an additional asset or two -- such as Toney Douglas -- to obtain the first-round pick that can be packaged to Denver in a trade that sends Anthony to New York.