Denver Nuggets small forward Carmelo Anthony (15) watches from the...

Denver Nuggets small forward Carmelo Anthony (15) watches from the bench while playing against the Cleveland Cavaliers during the first quarter of an NBA basketball game in Denver. (Jan. 15, 2011) Credit: AP

SAN ANTONIO - Mike D'Antoni made an alarming observation about the Knicks, who take a four-game losing streak into tonight's game against the Spurs: "We really reverted to back when we were 3-8.''

So with Donnie Walsh back in New York looking to start up meaningful talks with the Denver Nuggets to find out what it would take to acquire Carmelo Anthony, D'Antoni had the team as it is currently constructed at the AT & T Center trying to find the fast-paced, ball-movement, pick-and-roll-predicated game that only two weeks ago beat these same Spurs and made some believe they didn't need Anthony in the first place.

That debate about whether Anthony is needed this season has occurred within the Knicks' front office. There remains great hesitation to give up too much in any offer to the Nuggets, but, of course, the Knicks are only speculating about what they might have to relinquish at this point. The Nuggets have yet to tell them what they would want in return for Anthony.

Instead, they have decided to continue shopping around the league - "We are talking to plenty of other teams,'' general manager Masai Ujiri told reporters in Denver on Wednesday - to see if they can find a better offer, perhaps one that won't involve Anthony's having to sign a contract extension. The Nuggets are banking on having other bidders involved to keep the Knicks honest.

The Rockets have been interested and have draft picks, plus either Yao Ming's expiring contract or Kevin Martin to offer, though the Nuggets are not believed to be interested in Martin and the two years and $29 million left on his contract. Houston might accept acquiring Anthony without an extension.

The Bulls reportedly are being asked to re-engage their interest, but it is believed they still won't give up Joakim Noah, and the Nuggets to date have had no interest in Luol Deng. Could they find a match in swapping Anthony for Carlos Boozer?

Other teams, such as the Trail Blazers and Hawks, have been in touch in preliminary terms, according to a person with knowledge of the situation. And the Nuggets still have faint hope that with the team getting healthy and again playing at a high level, Anthony might decide to stay in Denver and sign the three-year, $65-million extension that has been on the table since July.

This is a process that anyone involved says likely will drag out almost until the Feb. 24 trade deadline. The Knicks can't wait that long to get the shot of adrenaline they so desperately need after four very disturbing performances. D'Antoni doesn't believe it has anything to do with potential distractions involving the Carmelo-inspired trade rumors, nor does he accept the midseason fatigue factor. "I'm not a big believer in that, at age 22, I'm tired,'' he said of his young team. "What are you going to be at 34?'' Rather than chastise his team, however, he opted for a more Zen-like approach. "I told them,'' he said, "to take a deep breath.''

Amar'e Stoudemire took a different tack. He called the game against the league-leading Spurs - 36-6 overall, 23-2 at home - "a must-win for us.''

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