The active New York Knicks have agreed to a contract to re-sign guard J.R. Smith to a two-year deal worth $5.6 million.
The first year of the deal is guaranteed and he holds a player option for 2013-14. If Smith opts out of the deal, the Knicks have retained his Bird rights, and can exceed the salary cap to sign him to another contract next summer.
Smith is one of several key veterans the Knicks are expected to retain when Wednesday's signing moratorium is lifted. The Knicks are expected to match the Houston Rockets' $28.8 million offer to point guard Jeremy Lin despite agreeing to a deal with veteran Jason Kidd and working out a sign-and-trade deal with Marcus Camby.
The team also has a four-year agreement with small forward Steve Novak, who led the NBA in three-point shooting accuracy at 47.2 percent last season.
Smith averaged 12.5 points per game last season.