ESPN is reporting that a deal with Mike D’Antoni is close, but the coach and his agent are awaiting an offer from Donnie Walsh and the Knicks.

“Although D’Antoni and agent Warren LeGarie continue to hold talks with the New York Knicks — with the Knicks said to be genuinely interested and contemplating whether to make an offer — it has been known for days that Chicago is the job D’Antoni wants.

ESPN.com reported Tuesday that Bulls general manager John Paxson, meanwhile, came away from two interviews with D’Antoni in Phoenix impressed and seriously interested in the coach who wants to leave the Suns in part because of a tense working relationship with Paxson’s good friend Suns president Steve Kerr. Sources said that Paxson huddled Tuesday with Bulls owner Jerry Reinsdorf to discuss the viability of hiring D’Antoni.”

It appears D’Antoni is using the Knicks to up the ante with the Bulls, who are hesitant to offer big money since they still owe Scott Skiles some $6 million. A more affordable option could be Tom Thibodeau.

Meanwhile, the Daily News is reporting that Mark Jackson continues to be the heavy favorite.

“Walsh traveled from Arizona to the Houston area Tuesday and met with former Mavs coach Avery Johnson to continue his “due-diligence tour.” But Jackson is still regarded as the overwhelming favorite to replace Isiah Thomas.”

“Walsh is putting James Dolan’s private jet to good use although it is a good bet that Mark Jackson, the favorite from the start, will become the Knicks’ next head coach. Walsh also met with Herb Williams and Rick Carlisle while both Scott Skiles and Jeff Van Gundy turned down the chance to interview for the job. It is unclear if Celtics assistant coach Tom Thibodeau will get an interview before Walsh names Jackson head coach.”- Frank Isola.