The New York Knicks acquired guard Raymond Felton and forward Kurt Thomas from the Portland Trail Blazers in exchange for forward Jared Jeffries and center Dan Gadzuric on Monday.
The Blazers signed Felton to facilitate a sign-and-trade transaction.
Felton, a seven-year veteran out of North Carolina, averaged 11.4 points, 6.5 assists and 2.5 rebounds per game for Portland last season. He played in 54 games for the Knicks in 2010-11 before he was traded to Denver in Feb. 2011.
The deal comes amid rumors that the Knicks will not match Houston's offer sheet on guard Jeremy Lin.
Thomas, 39, averaged just 3.0 points and 3.5 rebounds per game in the lockout- shortened season. The Texas Christian product spent seven seasons with the Knicks from 1998-2005.
Along with Jeffries and Gadzuric, the Trail Blazers received the draft rights to Kostas Papanikolaou and Giorgos Printezis along with a future second-round draft pick.
Jeffries played in 39 games for New York last season and averaged 4.4 points and 3.9 rebounds per game.
Gadzuric, a 10-year pro, played in just two games last year for the Knicks in 2011-12.