According to the report, the team has been frustrated with Smith's behavior on and off the court.
The NBA fined Smith $50,000 for "recurring instances of unsportsmanlike conduct." He tried twice this week to untie the shoelaces of opposing players.
"I'm not happy about this, because he was warned, he comes back and he makes the same mistake, and it's not right," Knicks coach Mike Woodson said on ESPN Radio. "It's just got to stop. I keep saying this every time something pops up, but it's got to stop. Something's gotta be done. It has to stop. I'll address it tomorrow when I see him, and then we'll go from there."