March 24 (Bloomberg) -- Donnie Walsh will accept a job overseeing the New York Knicks' basketball operations at the end of the season after leaving the Indiana Pacers, ESPN reports.

Walsh, 67, will sign a three-year, $15 million contract with the Knicks, ESPN said, citing a person close to the negotiations it didn't identify. It's not known whether Knicks President Isiah Thomas will remain with the National Basketball Association franchise, the cable sports network said.

Walsh, who's been with the Pacers since 1984, said today that he would resign as Indiana's president and chief executive officer at the end of the NBA season and then look at his options. A native New Yorker, Walsh met with Knicks management within the last two weeks about replacing Thomas, the New York Daily News reported yesterday.

The Pacers won three Central Division titles and made the playoffs 17 times during Walsh's 22 seasons in Indianapolis. The 19-50 Knicks have the fifth-worst record in the 30-team NBA and are in last place in the Eastern Conference's Atlantic Division.

To contact the reporter on this story: Erik Matuszewski in New York at matuszewski@bloomberg.net

Last Updated: March 24, 2008 22:54 EDT