Jackson told Felton in a conversation the two had during exit interviews last month that he would explore trade possibilities involving the 29-year-old.
"He was pretty honest with him," the source said. The conversation was first reported by SNY.tv.
A league source said the Knicks will show interest in free agent Steve Blake, potentially to bolster their point guard position if Felton is traded.
Felton struggled with injuries in 2013-14, missing 17 games due to various ailments. When healthy, he delivered an uneven performance for a Knicks team that won just 37 games and missed the playoffs for the first time in four seasons.
Felton averaged a career-low 9.7 points per game on 39.5 percent shooting. Opposing point guards averaged 22.7 points per game against the Knicks last season, a statistic that highlighted Felton's struggles on that end of the floor.
