Reports: Carmelo Anthony will re-sign with Knicks

Carmelo Anthony is returning to the New York Knicks. The free agent forward, who last month exercised the early termination option on his three-year, $64

Carmelo Anthony is returning to the New York Knicks.

The free agent forward, who last month exercised the early termination option on his three-year, $64 million contract to become an unrestricted free agent, plans to notify the team on Saturday that he will re-sign, according to multiple reports.

Anthony, 30, averaged 27.4 points, 8.1 rebounds and 3.1 assists last season, posting a 24.4 Player Efficiency Rating and 10.7 win shares. After embarking on a free agent tour that included stops in Dallas, Houston and Los Angeles, Anthony reportedly narrowed his options to the Bulls and Knicks. But on Saturday, his representatives told the Bulls and Rockets to move on, according to reports.

New York has reportedly offered the seven-time All-Star a five-year, $129 million maximum contract. But the team and Anthony are said to be negotiating a deal for more than $122 million but less than $129 million, according to ESPN.com's Chris Broussard, citing a source.

The Knicks went 37-45 and failed to qualify for the playoffs last season. It was the first time in Anthony's 11-year career his team didn't make the postseason. The team fired coach Mike Woodson and hired Phil Jackson as team president and Derek Fisher as head coach.

New York last month gained some cap flexibility by executing a six-player trade that sent center Tyson Chandler and point guard Raymond Felton to Dallas in exchange for a package including point guard Jose Calderon, center Samuel Dalembert and draft picks.

The team is reportedly discussing a trade that would create roughly $25 million in cap room by shipping Amar'e Stoudemire and Iman Shumpert to Philadelphia.

Just a matter of hours until Carmelo Anthony informs the Knicks of his return on a five-year deal, as @FisolaNYDN reported this week.

— Adrian Wojnarowski (@wojespn) July 12, 2014

League source confirms to @CBSSports that Carmelo Anthony has decided to re-sign with the Knicks. "Melo is staying," the person said.

— Ken Berger (@KBergNBA) July 12, 2014

-- Chris Johnson