By Marc Berman of the New York Post

jr smith

J.R. Smith has until June 26, two days before the NBA Draft, to give the Knicks notice on opting out of the final year of his contract worth $2.5 million, according to an NBA source.

If he doesn’t exercise the opt-out clause, Smith will be a Knick next season and could get a long-term deal with the club after next season. Because Steve Novak is a good bet to depart, the Knicks want Smith back as a sixth man — and possibly to play some point guard despite his wretched shotmaking in the Knicks’ five-game first-round knockout by the Heat.

Smith shot 3-of-15 in the elimination game and was 31.6 percent for the series — 17 percent from 3-point land (5-of-28).

Knicks general manager Glen Grunwald is hopeful Smith doesn’t exercise the opt-out and a source said he is leaning toward staying put with the marketplace squeezed for the middle class of free agents in the new CBA.