But as of 1 p.m. ET, no deal had been consummated, despite what sources describe as the Suns' clear interest in young Knicks guard Iman Shumpert as the headliner in a deal for Nash.
One source close to the talks told ESPN.com: "The Knicks don't want to trade (Shumpert), but they will if they have to. They want Nash."
If the Knicks and Suns can come to terms on a deal, Nash would receive a three-year contract in the $25 million range while Phoenix would receive Shumpert and a handful of cap-friendly contracts such as Toney Douglas, Josh Harrellson and Jerome Jordan.
The Suns have coveted Shumpert since last year's draft and, with Nash's exit inevitable, would view it as a boon if they could acquire him, sources told ESPN The Magazine's Chris Broussard.
One source told ESPN.com that the Knicks are trying to recruit a third team to help facilitate the trade.
Sources say that the Toronto Raptors in Nash's native Canada (with a three-year bid worth $36 million) and the Dallas Mavericks (who turned to the idea of bringing back Nash after missing out on Deron Williams) remain firmly in the hunt for Nash.
NBA.com reported Tuesday night that the Los Angeles Lakers are also making a push to trade for the two-time MVP, but sources close to the situation said Wednesday that the Suns continue to have strong reservations about dealing Nash to a divisional rival, especially after all the playoff battles between the Lakers and Suns during the Nash era.