McKnight, a 6-foot-9 forward from Raleigh, North Carolina, plans to enroll at Tennessee this summer and will be eligible to play in this coming season.
In a university release Sunday, Tennessee coach Donnie Tyndall said McKnight "gives us more size and athleticism -- along with a lot of great experience -- along our front line."
McKnight averaged 6.7 points and 5.1 rebounds while shooting 66.3 percent this past season.
McKnight joins former IUPUI guard Ian Chiles as graduate transfers on Tennessee's 2014-15 roster. Tennessee also has signed forwards Willie Carmichael and Jabari McGhee, guard Detrick Mostella and junior-college guards Devon Baulkman and Kevin Punter this month.