World Peace, who has struggled with injuries this season, signed a two-year contract with the Knicks last summer, but is now set to become a free agent.
The Knicks are also eager to buy Udrih out of his contract as they look to trim their roster in the second half of a frustrating season.
"Again, it's not complete yet I don't think. I'll know more, probably, after the game. They won't be in uniform tonight."
The Knicks currently have a 21-35 record in the NBA this season.