The Knicks are out of the running for free agent Jamal Crawford, according to an NBA source.

Crawford will decide between Sacramento and Portland. Each has a substantially larger offer on the table than the Knicks’ $2.5 million exception. A source said money was the deciding factor. Portland has a two-year, $10 million offer on the table, and Sacramento is believed to have raised its offer to $6.5 million in the first year.

The Knicks have turned to Shawne Williams, according to a source.

The Knicks were in negotiations with Williams’ agent, Happy Walters, to use their $2.5 million exception, possibly on a two-year deal.

Williams was a long shot to make the team last season, beat out Patrick Ewing Jr. for 15th man, then soared into the rotation. He played 64 games, averaged 7.1 points and shot a nifty 40.1 percent from 3-point range.

"Shawne made incredible strides last season,’’ Amar’e Stoudemire said at Wednesday’s practice. “I think hanging around us and learning how to play the game helped him a lot. We definitely want him as a teammate. He’s been a phenomenal teammate for us. I’m not sure what’s going to happen with him. He’s staying in shape and ready in case we do sign him or someone else does.’’

Coach Mike D’Antoni had put on his recruiting hat to land Crawford, admitting Wednesday he had spoken via phone to the Hawks star “a few times’’ to recruit him and got good feedback.

The Knicks were hoping he'd take less money to come back to New York and compete for a title.

“I did a lot of groveling,’’ joked D’Antoni, who traded Crawford weeks into his first season as Knicks coach. .

“I tried to present the best picture possible,’’ D’Antoni added. “You have a relationship with players and you hope. You know it’s a business decision. But you hope you can make them feel comfortable that if they choose us, there’s a role and what his role will be and how much we like him and think of his game.’’

“At the end of the day, he’s got to be comfortable with every aspect playing, his teammates and the business side, the money,’’ D’Antoni said. “If you line them up, great. If something outweighs the other, you never know.’’

Crawford told The Oregonian on Tuesday his mother wants him to play in Portland, a two-hour drive from his home in Seattle.

Mo Evans, a defensive wing man for the Wizards, is also on the Knicks' radar but the Wizards would like to re-sign him.

The Knicks believe Williams can be both the backup small forward and power forward and is a bigger need than Evans.

The Knicks have an imminent depth issue as Bill Walker missed his second straight practice and has an potentially lingering groin issue that could force him to miss the preseason opener Saturday in Newark against the Nets.