The New York Post said Bibby signed for the veterans' minimum after splitting last season with three teams, including the Miami Heat, for whom he played in the NBA Finals against Dallas.
He averaged 7.3 points and 2.5 assists in 26-plus minutes over 22 regular season games with the Heat. He boasts per-year averages of 15.2 points and 5.7 assists over 962 career games with the Grizzlies, Kings, Hawks, Wizards and Heat.
Knicks interim General Manager Glen Grunwald also said the team had re-signed forward Jared Jeffries, who was picked up by New York last season after being waived by Houston.
Jeffries, 30 has appeared in 552 career games with the Wizards, Rockets and Knicks.