A team spokesman says the team has not been told it is out of the race for James, who is set to announce Thursday night where he will play next season.
The Knicks made their pitch to James last Thursday in Cleveland and believe they became even more attractive to him when all-star forward Amare Stoudemire agreed to sign with New York on Monday.
Stoudemire said he'd try to recruit James to come along. He wrote a message to James on Twitter on Wednesday, telling the MVP to join him in New York and saying "Oh let's do it!!"
New York has enough salary cap space to sign two players to maximum level contracts.
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