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Newsday's Alan Hahn told WFAN that Walsh's decision had to do with family.

Also, Hahn believes there is no chance Isiah Thomas will return to the Knicks. The only people perpetuating that rumor are people who are friends with Thomas.

Updated at 12:21 pm:

Original Post at 11:20 am:

The Knicks just sent out this press release from James Dolan:

“Following a long series of discussions regarding his future role with the New York Knicks, Donnie Walsh and I have mutually agreed that he will be leaving his position as president, basketball operations of the Knicks at the end of June. Donnie will remain with the team as a consultant for the 2011-12 season. ... Glen Grunwald, the Knicks' senior vice president, basketball operations, will serve as interim general manager beginning in July, overseeing all player transactions.”
I’ve been on this one for a while and couldn’t confirm the story last week which stated Walsh was going to be re-signed.

A source close to the situation would only say that Walsh was “caught a bit off guard” when told of the news from Dolan.

“From what I understand, it came down to future control of the organization," radio host Craig Carton told WFAN earlier today.

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