Mills, 25, made $1.3 million last year and will become an unrestricted free agent later this month.
He was a big factor in the Spurs five-game destruction of the Miami Heat in the NBA Finals, especially during the last two victories when he scored 14 points in Game 4 and 17 points, including 5-8 from 3-point land, in the Spurs' Game 5 clincher.
For the season, Mills averaged 10.2 points, 2.1 rebounds, and 1.8 assists in almost 19 minutes per contest.
The Knicks starting point guard last season, Raymond Felton, is on the books for the next two seasons at $3,793,693 and $3,950,313, respectively. Felton struggled last season with consistency and was charged with with second and third-degree criminal possession of a firearm and fourth-degree possession of a firearm after allegedly pointing a gun at a woman in February.
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“New York is definitely a city Mills would want to play in,’’ the source said. “He has that personality.’’MORE NBA COVERAGE: Offseason outlook: San Antonio Spurs | Duncan expected back next season
Mills, 25, has always been on the Knicks’ radar for this summer, but he could have zoomed to the top after his playoff performance.
The Knicks are looking to appropriate their $3.2 million mini mid-level on a starting point guard to supplant the ineffective Raymond Felton.
Certainly the Spurs should do everything they can to keep Mills, but in the Knicks’ favor is that they are one of the few teams looking for a starting point guard.