Warkentien could prove to be a key acquisition at a time when the Knicks have been mentioned in trade talks involving Nuggets superstar Carmelo Anthony.
"I haven't announced anything yet," Knicks president Donnie Walsh said of Warkentien.
Following the Nuggets loss to the Philadelphia 76ers Sunday, Anthony was stunned to hear of the report.
"As far as I'm concerned, I guess that's a great addition to that organization," Anthony said.
Anthony has been the subject of trade talk since refusing to sign a three-year, $65 million extension last summer. Two potential blockbuster trades with the New Jersey Nets have fallen apart.
The Nuggets declined to extend the contract of Warkentien in August. Warkentien was the league's executive of the year in 2009 when the Nuggets reached the Western Conference finals.
Information from The Associated Press contributed to this report.