Despite working him out earlier this month, the Knicks are no longer considering signing Tracy McGrady, according to Marc Berman of the New York Post. However, both Berman and Al Iannazzone of Newsday confirm a weekend report that suggested the Knicks are looking at Rasheed Wallace.
Berman notes that Wallace and Knicks assistant GM Allan Houston share an agent, while Iannazzone points out that 'Sheed has a good relationship with Knicks coach Mike Woodson. Jared Zwerling of ESPNNewYork.com (Twitter link) suggests that a Wallace signing would be another indication that Woodson has significant input in personnel decisions. Zwerling adds (via Twitter) that the Knicks' interest in Wallace is likely dependent on how much the team believes he can improve and contribute over the course of the season, rather than his current condition.
As for McGrady, it isn't clear whether the Knicks simply weren't interested in the veteran guard, or if T-Mac's asking price made it impossible for the two sides to reach an agreement. Last we heard, McGrady was seeking a guaranteed contract from a contending team.