Source: Knicks include Gallo in offer for Carmelo

LOS ANGELES - Carmelo Anthony said that before All-Star Weekend ends, he "would like to have something on the table'' to put an end to what even he dubbed "all the Melo-drama.'' And the Knicks on Friday took a major step to provide that with an offer that would dramatically restructure their roster.

The Knicks' latest offer - which was first reported by Yahoo! Sports and confirmed by a source to Newsday - would send a hefty package of Danilo Gallinari, Wilson Chandler and Raymond Felton to Denver for Anthony, veteran guard Chauncey Billups and at least one other player. It is believed a third team, identified in multiple reports as the Minnesota Timberwolves, would be involved to absorb Eddy Curry's $11.2-million expiring contract and take Anthony Randolph while sending a first-round pick to Denver. This deal would save the Nuggets about $6 million in luxury-tax relief.

As of Friday night, the Nuggets had yet to accept the Knicks' latest offer, which would be contingent upon Anthony - who can opt out of his contract after this season - agreeing to a three-year, $65-million contract extension.

The latter part isn't a concern, but the price the Knicks are willing to pay to pair a second superstar with Amar'e Stoudemire didn't come without serious consideration.

A source with direct knowledge of the situation said the Knicks earlier this week set a limit of how much they were willing to give up for Anthony and "kind of passed it'' with the latest offer.

The Knicks, according to multiple sources, initially were against adding Gallinari, 22, to a package that already included Chandler, 23. But a person with direct knowledge of the deal said it wasn't as much whom the Knicks were giving up in the trade, "it's how many'' players they would give up.

Will it be enough? One NBA executive called Denver's asking price for Anthony "monumental.'' A source said the Nuggets also wanted rookies Landry Fields and Timofey Mozgov and wanted to dump a few long-term contracts in the deal as well.

Denver also was in negotiations with the Nets, and the Bergen Record reported Friday that a deal was in place between the teams, contingent upon Anthony's accepting a contract extension with New Jersey.

Talk of a deal with the Nets - and a scheduled meeting with owner Mikhail Prokhorov - quickly faded, however, when the news emerged that the Knicks already had met with Anthony and the Nuggets.

According to multiple sources with direct knowledge of the situation, officials from the Knicks and Nuggets met in Los Angeles on Thursday night for face-to-face negotiations. The meeting, one source said, included talks between Knicks officials and Anthony. The Daily News first reported Friday on its website that the Knicks met with Anthony on Thursday night.

Anthony strolled into his All-Star media availability session at the J.W. Marriott and immediately downplayed reports that he had meetings scheduled with the Knicks and Nets on Friday. But he did say he would want to meet with whichever team completed a deal for him before he signed an extension.

"In anything that I do, business-wise, and I look at this as a business right now, I would love to sit down with Mr. Prokhorov, with Mr. Dolan, whatever team that the Denver Nuggets would send me to,'' Anthony said. "I would love to sit down with them, look them in the eye and see what the future holds.''

With both teams, Anthony already is aware of what awaits him. The Nets offer the promise of a new arena in Brooklyn, where Anthony was born and lived until the age of 8. "I know that would be perfect for me,'' he said, "to go back to New York, go back to my birthplace.''

He spoke with a little more excitement about the rebuilding Knicks and teaming up with one of his good friends, Stoudemire, though he tried his best to stifle his enthusiasm.

"I think New York already has something there with Amar'e,'' he said. "That city is looking forward to bringing back great basketball and they're looking forward to that. And if that's my destination, that's something I can bring to that team.''

Though it is widely believed that the Knicks are his preferred destination, Anthony refused to acknowledge that, saying, "I can't sit here and say I want to go here or I want to go there. I can't really do that.''

NBA rules prohibit a player from making public trade demands, but Anthony could privately go to the Nuggets and tell them he will sign an extension only with the Knicks, which would force Denver's hand in a trade.

"Yeah, I can, but then they have to do what's best for their organization, too,'' he said. "So at the end of the day, they can say, forget it, we have to take care of our organization . . . We have to do what we have to do.''

Anthony made it clear he doesn't want to be a "rental'' player who is sent to another team without the contingency of a signed extension. "I don't want to go somewhere and be a rental for two months,'' he said, "and then have to deal with this all over again.''

The Knicks could sign him as a free agent at that point, but Anthony admitted he is concerned about losing millions as a free agent in a new collective- bargaining agreement, which would be in place before he could sign his next contract.

There is a lot on his mind, and he hopes he finally can have some clarity, and perhaps a good night's sleep, by Sunday.

"I haven't gotten any sleep in a week, so I want to get it done,'' he said. "I want to get something done.''

The Dolan family owns

controlling interests in the Knicks, MSG and Cablevision. Cablevision owns Newsday.