Davis has become the starter since Lin was lost to knee surgery, and Novak and Smith have provided strong 3-point shooting off the bench.
Grunwald spent a decade with the Toronto Raptors, including seven years as their GM, before joining former Indiana University teammate Isiah Thomas in New York as the Knicks' senior vice president of basketball operations on Sept. 6, 2006. He remained with the organization after Thomas was replaced by Walsh two years later and was a valuable member of the front office when Walsh battled some health problems.
"It has been a great honor to be a part of this storied franchise for the past six seasons," Grunwald said. "I would like to thank Mr. Dolan for this opportunity and look forward to building on our commitment to give our fans a team that they can be proud of today, and in the future."
Grunwald's return could strengthen interim coach Mike Woodson's hopes of returning. The Knicks are 16-6 since Woodson — also a college teammate of Grunwald and Thomas — replaced D'Antoni on March 24 when the team was 18-24.
Anthony told reporters Tuesday he would like Woodson to return.