Walsh reportedly pushing deal for McGrady that would include Jeffries

GREENBURGH, N.Y. - Though Donnie Walsh downplayed reports of recent conversations he's had with the Rockets about acquiring Tracy McGrady, it is believed that the Knicks' president is pushing a scenario that would include Jared Jeffries to clear $6.8 million off the salary cap in 2010, especially if the Rockets continue to demand that a young asset such as rookie Jordan Hill be involved in any deal.

One trade possibility promoted by Yahoo! Sports last night involved McGrady, who is in the final year of his contract, coming to the Knicks along with Joey Dorsey and Brian Cook for Jeffries, Hill and Al Harrington or Larry Hughes. The Knicks also would have to give up an unprotected first-round pick in 2012.

This report, according to a source with knowledge of the situation, makes up loose parameters of at least one deal Walsh has discussed with the Rockets. Though it would be a precarious mortgage of the future in giving up Hill, the team's 2009 lottery pick, and at least one future unprotected first-rounder, the deal would open more than $9 million in cap space for the summer foray into free agency.

As a result, the Knicks could have enough cap space to make two max contract offers to high-end free agents such as LeBron James and Dwyane Wade, who have talked about teaming up and who put on a heck of a show in Sunday's All-Star Game in Dallas. The Knicks also could eye tandems such as Joe Johnson and Chris Bosh, among other possibilities.

"If this trade happens," one NBA source said, "Donnie Walsh should be Executive of the Year."

It appears Walsh will be very busy before the deadline. On another front, the Celtics still are believed to have great interest in acquiring Nate Robinson.

Nothing is imminent with the McGrady situation, mainly because the Knicks - who are owned by Cablevision, which also owns Newsday - very well could be negotiating against themselves. If a trade happens, it likely won't transpire until right before Thursday's 3 p.m. deadline, and it will be up to Rockets general manager Daryl Morey to pull the trigger. He still might be more inclined to keep McGrady on the payroll the rest of the season.

Apparently, McGrady is anticipating a future in New York. According to a Houston TV station citing sources close to the exiled Rocket, he expects something will be done with the Knicks by "midweek."

Walsh said after practice yesterday, "I'm not going to get into any discussions about trades. There's always a lot of conversations. No sense getting into it. I read things that people write, and some of it I've never seen before or heard before, so it makes no sense getting into it. If something happens, we'll tell you.''

Walsh hasn't seen McGrady himself, but a Knicks representative has watched him work out recently. The team might request a follow-up to ensure he is ready to step into an NBA season that, with 31 games to go, is slipping away from the 19-32 Knicks.

Notes & quotes: All-Star David Lee intended to get back to New York from Texas in time for practice, but travel issues caused him to meet the team in Chicago for Tuesday night's game against the Bulls . . . Slam Dunk champion Robinson sat out practice with flu symptoms and is questionable for the game.