Lin could sign a new contract with the Knicks as early as Thursday, for a reported $28.8 million over four years.
Knicks' coach Mike Woodson repeated on Wednesday that Lin will "absolutely" be back this season and will be the starter at his position, despite the fact New York will sign veteran Jason Kidd to a reported $9 million over three years.
"Jeremy was our starter before he got hurt," Woodson told the New York Post. "Unfortunately, he went down with an injury. He's not going to be punished for that." Woodson said Kidd will back up Lin and help in his development.
Lin received an offer sheet from the Houston Rockets, but the Knicks said all along they planned to match any offer for their restricted free agent. The offer sheet still hasn't been signed and sent to the Knicks, who would then have three days to match.
"Jeremy Lin has always been a big part of what we we're trying to do as we move forward with our franchise," Woodson said.
Lin, meanwhile, received an ESPY Award on Wednesday night in Los Angeles for the best breakthrough athlete of the year despite playing in only 35 games before an injury ended his season.
In other NBA news, former Stanford center Brook Lopez has agreed to an extension with the Brooklyn (formerly New York) Nets worth a reported $60 million over four years. Lopez played only five games last season due to injuries, but averaged 19.2 points. He averaged 17.4 points while playing in 82 games his first two NBA seasons.