The Cleveland Cavaliers waived Davis last week and designated him as their amnesty player. Davis has a bulging disc in his back and will be sidelined indefinitely.
Davis played in 43 games for the Los Angeles Clippers last season before being dealt to the Cavs at the trade deadline. In 58 total contests last year, Davis averaged 13.1 points, 6.7 assists and 2.7 rebounds.
The 12-year pro out of UCLA has career averages of 16.5 points, 7.3 assists and 3.9 rebounds over 806 games (678 starts) with the Hornets, Warriors, Clippers and Cavaliers.
The Knicks needed backcourt depth after waiving Chauncey Billups with the amnesty clause.