At this point the Knicks have all their options open for a new head coach. The latest report on their wide open coaching search is that Phil Jackson will see if they can pry Brian Shaw away:
Sources said Jackson also intends to explore whether the Denver Nuggets are in any way amenable to releasing Brian Shaw from his contract in exchange for some form of compensation. Shaw is a longtime Jackson favorite who, after missing out on numerous head-coaching jobs, just completed his first season with the Nuggets, posting a 36-46 record despite numerous injuries to front-line players.
I understand the Knicks line of thinking here. Shaw has ties to Phil and there were some issues with Shaw and the Nuggets this season. So he could actually be available via someone sort of trade.
At this point, no one has any clue who will end up taking this job.