The team is hosting a lavish recruiting party for James and his entourage in New York when the ball drops on free agency next Thursday, the Cleveland Plain Dealer reported.
The plan, a source told the newspaper, is for a celebrity chef to cater an elaborate meal in a high-end Manhattan location for James, his representatives and friends.
New York is getting help in its bid to lure James from mayor Michael Bloomberg and a host of celebrities.
The Knicks, Bulls and Clippers are among the teams who have cleared cap space in an attempt to land James.
His current team, the Cavaliers, can pay him more to stay in Cleveland.