The Knicks won their sixth straight, getting 34 points and 14 rebounds from Amare Stoudemire.
Stoudemire has produced at least 30 points in all six of the wins in New York's streak and one more would equal the club record of seven such performances produced by Willie Naulls in 1962.
The Knicks have lost just once in their last 12 games.
Andrea Bargnani hit a 3-pointer for Toronto to tie it with 34 seconds left and New York let the shot clock run down before Felton hoisted the game-winning shot. Bargnani's desperation attempt to again tie it failed at the buzzer.
Bargnani had a career-best 41 points while making 16-of-24 shots. He also had seven rebounds with six assists.