Newsday's Al Iannazzone reported league sources said the Knicks gave guard Langston Galloway a qualifying offer, making him a restricted free agent.
The Knicks can match any offer for Galloway, who has averaged 9.1 points and 3.8 assists in 127 games with New York. Phil Jackson has said he expects to re-sign Galloway, who is a Jackson favorite.
The free-agent negotiation period begins Friday at 12:01 a.m. The qualifying offer to Galloway was reportedly about $2.7 million.
Iannazzone also reported the Knicks have not made a qualifying offer to forward Cleanthony Early, which would make him an unrestricted free agent.
Early, who is in Florida playing with the Knicks summer league team, told Iannazzone he wants to remain with the team. "I'm pretty confident that things will work out."