Sources: Jose Alvarado returning to Knicks on new 3-year deal

NEW YORK -- Jose Alvarado is declining his $4.5 million player option and intends to sign a new three-year, $14-plus million deal to return to the New York Knicks, sources told ESPN's Shams Charania.

The guard was acquired from New Orleansduring the season and had a player option for $4.5 million for next season.

"I'm Home," Alvarado wrote on X, ending his post with a series of orange and blue hearts.

Alvarado indeed came home on Feb. 5 when the Knicks acquired the Brooklyn native who attended Christ the King High School.

He was primarily a backup behind Jalen Brunson but was on the floor with the All-Star for most of the fourth quarter of the Knicks' 107-106 victory overSan Antonioin Game 4 of the NBA Finals, when they made a record comeback from a 29-point deficit. Alvarado had eight points and three assists in the period.

The Associated Press contributed to this report.