Knicks shooting guard J.R. Smith said he wants to re-sign with the Knicks after opting out of the final year of his contract. (Ron Hoskins/Getty Images)

New York Knicks shooting guard J.R. Smith is expected to opt out of the final year of his contract, in which he is currently slated to earn $2.8 million.

But after the Pacers eliminated the Knicks from the NBA playoffs on Saturday. the volatile 27-year-old said he would like to “retire a Knick,” according the New York Daily News‘ Peter Botte.

Smith joined the team midway through last season after a stint in China during the lockout, signing a two-year, $5.7-million deal.

The most the Knicks can offer him is an “early Bird exception” starting at four years, $4.9 million per year, according to Botte.

From the report:

After blossoming during the regular season — averaging a career-high 18.1 points and winning the Sixth Man of the Year Award — Smith struggled in the postseason, shooting 33.1 percent.

His reported late-night partying throughout the playoffs caused controversy, and he even took the blame for the Knicks’ second-round woes himself.

J.R. Smith’s younger brother, Chris, could be with the Knicks next season. (Jack Arent/Getty Images)

J.R. Smith’s younger brother signed an invitation to play for the New York Knicks at their training camp in October, according to a picture J.R. tweeted that shows Knicks general manager Glen Grunwald seated beside his brother signing the invitation. The rumor was later confirmed in a tweet from Marc Berman of The New York Post.

Chris Smith had been a summer league participant with the Knicks in Las Vegas, but played poorly, shooting 29-percent over five games. Chris played for Rick Pitino at the University of Louisville in 2011-12. He and fellow Cardinal Peyton Silva were the only players to appear in all 35 games last season for the team.

J.R. re-signed with the Knicks this offseason in a deal that pays him $2.8 million over two years. The Knicks head into training camp with a roster that will allow very little playing time for new signings at this point.

As a 6-foot-2 guard on a team already stacked with players in the backcourt, the younger Smith would probably only see playing time if there were to be a rash of injuries to the Knicks. Last season saw something akin to this however, with the rehabbing of Iman Shumpert and Baron Davis at the beginning of the year, compelling then-coach Mike D’antoni to call upon Jeremy Lin.

According to Jared Zwerling of ESPN, a source close to the relationship that Chris has with the Knicks said the team acquired him so they could assign him to their D-League team, the Erie BayHawks.

Lil bro wit the #knickstape two brothers on the same team at the same damn time! instagr.am/p/NypRrMtfMI/—
JR Smith (@TheRealJRSmith) August 01, 2012

Confirmed Chris Smith has been invited to training camp but JRs bro didn't even start on Vegas summer league team.—
Marc Berman (@NYPost_Berman) August 01, 2012

New York Knicks guard J.R. Smith will decline his option with the team but hopes to re-sign with the Knicks under a longer contract, reports The New York Times‘ Howard Beck on Twitter.

JR Smith will decline Knicks option but intends to re-sign for longer term w/NY, source says. Story posting soon.

—
Howard Beck (@HowardBeckNYT) June 25, 2012

Smith signed with the Knicks midway through last season and averaged 12.5 points per game in 35 games with the team.

Smith had until Tuesday to decide if he wanted to exercise his option to return under a one-year, $2.44 million deal.

Earlier this offseason, Smith told Newsday‘s Al Iannazzone that he liked being close to his native New Jersey.

“I want to be here so I’m not really putting too much emphasis on it,” he said. “I got money now. It’s all about winning, and whatever is the best situation and the best fit really. If all things are equal, I’m staying.”

New York Knicks guard J.R. Smith is suing a Chinese basketball team over $1 million in withheld salary. (Issac Baldizon/Getty Images)

During the NBA lockout, New York Knicks guard J.R. Smith played for the Chinese team Zhejiang Chouzhou. Now, he has filed a lawsuit against the team over more than $1 million of salary withheld because of missed practices and other incidents, reports the New York Post‘s Marc Berman.

The team alleges that Smith missed 80 practices between October and February, he skipped team meetings and his sister was “abusive.” Pro Basketball Talk previously reported that Smith’s sister had allegedly been involved in fights with Chinese fans.

Smith denies that he missed 80 practices. His representatives also argue that the team could have terminated his contract for missed practices, but did not.

“It is not possible in the reasonable course of things the player did not attend so many practices [most probably all], held by the club,’’ Smith’s complaint reads. “On the contrary, the player attended many practices and he has presented his excuse for any non-attendances.’’

Berman reports that a FIBA arbitrator will rule on the case. Smith’s total salary with the team was supposed to be $2.88 million.

Smith signed with the Knicks after his time in China. He averaged 12.5 points per game in 35 games with New York.

Smith has 20 days to decide whether he will return to the Knicks next season. (Jeff Zelevansky/Getty Images)

Guard J.R. Smith, who gave the New York Knicks a boost when he signed with the club upon returning from China, has until June 26 to decide whether to exercise a player option to return to the team this fall for $2.44 million.

A New Jersey native, Smith told Al Iannazzone of the Newark Star-Ledger that he loves being so close to home. But if Smith elects to become a free agent, the most the Knicks could offer him is $2.8 million, and he could possibly make $5 million or more elsewhere — although he says that $$$ are not foremost on his mind.

“I want to be here so I’m not really putting too much emphasis on it,” he said. “I got money now. It’s all about winning, and whatever is the best situation and the best fit really. If all things are equal, I’m staying.”

Denver Nuggets head coach George Karl told ESPN Radio that despite the emergence of Jeremy Lin, he does not see the New York Knicks getting past the first round of the playoffs.

“The thing I don’t like about the situation is all this stuff is happening with very little practice time,” Karl said during an interview with Stephen A. Smith on ESPN Radio Sunday. “I don’t think they’re going to get out of the bottom half of the draw, so I think they’re going to draw one of the top teams in the Eastern Conference (in the playoffs). I’ll be honest with you, I think it’s going to be very difficult for them this year to put the pieces together to figure out how to beat one of those top three or four teams.”

With star forward Carmelo Anthony returning the lineup, some have wondered if the team would be able to carry the same momentum they had built in his absence. New York lost their first game with Anthony back to the New Jersey Nets Monday night. It marked the first time that rising star Jeremy Lin, Amar’e Stoudemire, Carmelo Anthony, and recently acquired guard J.R. Smith have played together.

In Anthony’s absence the Knicks won eight of 10 games. They are currently 16-17, and rank seventh overall in the Eastern Conference.

Both Anthony and Smith played for Karl as members of the Denver Nuggets last year.

The New York Knicks have officially signed ex-Denver Nuggets star J.R. Smith, the team officially announced Friday night, according to ESPN.com.

Smith indicated earlier in the day via Twitter that he was making the move.

Details of the contract have not been released, but the report states that the Knicks have waived forward Renaldo Balkman to free up space.

The New York Knicks are close to making a deal for free agent shooting gaurd J.R. Smith, according to the New York Daily News.

It is believed that Smith will likely receive the Knicks’ $2.5 million exception after his agent met with Knicks chairman James Dolan to finalize a contract.  The Los Angeles Clippers were also believed to be in negotiations with Smith.

Smith signed with a Chinese pro team during the NBA lockout and was obligated to honor the contract until this month. He is now able to sign with the Knicks for the remainder of the season.

Last season with the Nuggets, Smith averaged 12.3 points shooting, 2.2 assists, and 4.1 rebounds per game.  If the deal becomes official, Smith will join the resurging Knicks and his former Nuggets teammate, Carmelo Anthony.