Knicks Re-Sign J.R. Smith

11:38pm: Smith has officially signed his two-year deal to remain in New York, tweets SI.com's Sam Amick.

12:03am: J.R. Smith and the Knicks have agreed to a contract that will bring Smith back to New York for at least one more year, tweets Ian Begley of ESPNNewYork.com. Smith will sign a two-year deal with a first-year salary of about $2.8MM and a second-year player option, according to Begley.

When Smith declined his option for 2012/13 in late June, we heard that he would likely re-up with the Knicks for the maximum salary they could pay him. Because Smith just signed with the Knicks in February after returning from China, he only had Non-Bird Rights, which meant a maximum raise of 120%. Since Smith re-signed in New York though, his Bird clock will keep ticking, so it wouldn't be a huge surprise to see him opt out again in search of a larger raise when he earns Early Bird rights next summer.

The agreement with Smith is the latest move in a busy offseason for the Knicks, who have already agreed to sign Steve Novak and Jason Kidd, have worked out a sign-and-trade deal for Marcus Camby, and are expected to match an offer sheet for Jeremy Lin.

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