The Knicks can save $10.5 million of Chauncey Billups' $14.2 million salary for the 11-12 season if they elect to waive him within five days of their final game.

But a source tells Alan Hahn that the Knicks aren't considering that option and instead have interest in signing Billups to an extension beyond 2012.

The Knicks believe Billups is the right point guard to direct their offense and that an extension would free up money to make upgrades to the roster via free agency.

The Knicks are currently slated to have cap space in 2012, though that is dependent on what happens with CBA talks.