The report says D'Antoni told Team USA head coach Mike Krzyzewski he will not be rejoining his Olympic staff.
Team USA will announce Krzyzewski's return as U.S. Olympic coach Thursday. D'Antoni turned down the job as he didn't want to make another four-year commitment because of his family.
D'Antoni has been with Team USA since 2006 and won two gold medals as an assistant.
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"He wants to stay married,'' the source said. ESPN.com reported Jim Boeheim, also on Coach K's staff, has agreed to return. Boeheim, in defending Carmelo Anthony, ripped the Knicks' roster two days ago as not being good enough, including Tyson Chandler by name for not wanting the ball.