From ESPN:

The Knicks have a trade proposal on the table with the Memphis Grizzlies that would see Darko Milicic and Marko Jaric dealt to New York in exchange for Zach Randolph.

An executive with knowledge of the trade talks said Friday that Knicks president Donnie Walsh initiated the Randolph-to-Memphis talks with the Grizzlies recently and it's up to Walsh to sign off on the deal. But it appears Walsh has cooled to the idea of trading his player, the executive said.

A Knicks spokesman declined comment Friday.

Milicic is reportedly owed $14.5 million over the next two seasons, while Jaric will make $21.3 million over the next three seasons. The Knicks want to trade Randoph because his contract runs through 2010-11. He will be paid nearly $48 million over those three seasons.

The move helps the Knicks with their salary cap. It has been widely perceived that their goal is get under the cap before the summer of 2010 so they can make a run at LeBron James and other high-profile free agents who will hit the market that offseason.