Smith agrees to return to Knicks

NEW YORK (AP) The New York Knicks are keeping another key member of their rotation with JR Smith deciding to re-sign.

Smith's agent confirms the deal that was agreed to early Tuesday. Smith had declined a $2.5 million option for next season, because doing so meant he could earn slightly more. But the New Jersey native had hoped to return to the Knicks.

Smith joined the team in February after playing in China during the lockout and averaged 12.5 points, right at his career average. The 6-foot-6 guard joins Steve Novak, who agreed to terms Monday, in returning to the Knicks. Both were reserves last season, but Smith could become a starter if the Knicks don't match an offer sheet Landry Fields plans to sign with Toronto.

Deals can become official on Wednesday.

Updated July 10, 2012