Frank Isola of the New York Daily News reports that a new clause in the Collective Bargaining Agreement could effectively mean the end of Allan Houston in New York as well as luxury tax relief for the Knicks.

A person familiar with the negotiations between the league and the players' union told the Daily News the two sides are finalizing a clause that would give teams that pay the luxury tax the option of releasing one player and removing that player's salary from their luxury-tax number.

The Knicks are expected to take advantage of the one-time only offer and would save approximately $40 million if they waive Houston, the oft-injured shooting guard team president Isiah Thomas has been trying to remove from the roster since last year.

Houston, 34, who has played in just 70 games over two seasons because of an arthritic knee, is scheduled to earn $39.8 million over the last two years of his contract. If the Knicks cut Houston, they are still obligated to pay his entire salary, and his contract would still count against the salary cap.

However, the Knicks may be $45 million over the luxury-tax threshold next season and would have to pay a dollar-for-dollar tax. By releasing Houston, who will earn $19.125 million in 2005-06, they would eliminate the same amount that Dolan, the Garden chairman, would have to pay in luxury tax.

"I think he's gone," said one league executive. "How could they turn that down?"

Thomas did not return calls yesterday. Five days ago, Houston told The News he "didn't really know" if the Knicks wanted him back.

"But I don't really think about it," Houston added. "I just think about being fortunate enough to continue to play."