Despite reports to the contrary, Indiana Pacers chief executive Donnie Walsh has announced that he will leave the organization following the season. The decision comes following an 8-hour meeting on Friday with Pacers owners Herbert and Melvin Simon.

It was reported last week that Walsh has had discussions with Madison Square Garden owner James Dolan about possibly taking over control of the Knicks at the end of the season.

More, via ESPN:

“As far as what I’m going to do, I’m not sure,” the 67-year-old Walsh said at a news conference. “As a result, I’m not going to comment on it until I have a better idea.”

Reached Monday, Knicks spokesman Jonathan Supranowitz said the Knicks would not comment on Walsh’s departure. Walsh’s agent, Steve Kaufman, said he would not comment on his client’s employment status until after the NBA season.

In New York, Thomas wouldn’t comment on speculation that Walsh could replace him, but praised his former boss with the Pacers.

There are two major obstacles that must be cleared befre the Bronx-born Walsh could join his hometown Knickerbockers: 1) Dolan would have to grant full control of operations to Walsh and likely lax the Gestapo-like atmosphere at the Garden; 2) The Milwaukee Bucks have evidently thrown their hat into the ring as well, and speculation has already begun that Walsh could use the Knicks to squeeze a better offer out of Bucks owner Herb Kohl.