Updated

The Melo-drama appears to be reaching its climax.

The New York Knicks have upped their offer for Carmelo Anthony -- something which they had been hesitant to do -- and appear to have positioned themselves as the favorite to land him, according to The New York Post.

The Knicks would part with three starters. Danilo Galinari, Wilson Chandler and Raymond Felton along with the expiring contract of the mercurial Eddy Curry. It is also believed that they would trade Anthony Randolph to the Timberwolves in exchange for a first round pick, which they would then flip to the Denver Nuggets.

The Knicks would receive the 26-year-old Anthony, veteran Chauncey Billups and possibly Anthony Carter for their haul of players.

And the Knicks have apparently drawn a line in the sand with their latest salvo. "We're not going any further now," a source told Newsday. "It's out of our hands."

New York's move to up their offer comes as their owner, James Dolan, has personally become involved in the trade talks. But while the new offer is the best one yet from the Knicks, the Nuggets have always been believed to prefer the package that the New Jersey Nets were offering. That package reportedly includes four first round picks along with top rookie Derrick Favors, Devin Harris and Troy Murphy's expiring contract.

The Nets, who publicly announced that they were out of the running for Anthony last month, stormed back into the picture this week.

Nets owner, Mikhail Prokhorov met with Anthony in Los Angeles on the same day a spokeswoman for the Russian billionaire said he had no plans to sit down with the All-Star forward. Minority owner Jay-Z was also said to be at the meeting, the AP reported.

But even if the Nuggets prefer the Nets package they may find themselves forced to deal with the Knicks. SI.com reported Sunday that Anthony does not want to sign an extension with New Jersey.

Anthony has been amenable to signing an extension with the Knicks, for 3 years and $65 million all along, but New York's offer was not seen as good enough.

But things might have changed this weekend, with the NBA's version of a soap opera continuing to see plot twists and turns as the trade deadline nears.

Contact Adrian Carrasquillo at Adrian.Carrasquillo@foxnewslatino.com.

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