Alvarado is declining his $4.5 million player option and intends to sign a three-year, $14 million-plus contract with the Knicks, Shams Charania of ESPN reports Friday.
After being traded from New Orleans to New York in February and winning a championship with the Knicks, Alvarado is set to remain in New York. The 28-year-old point guard will likely continue playing a meaningful role off the bench behind Jalen Brunson. Over 28 regular-season appearances (three starts) with the Knicks, Alvarado averaged 6.6 points, 3.8 assists, 2.0 rebounds and 1.0 steals in 16.9 minutes per showing.