The New York Knicks reportedly will not match the offer sheet signed by point guard Jeremy Lin from the Houston Rockets.

Lin, a restricted free agent, signed a three-year, $25.1 million deal with Houston. ESPN.com reported a Knicks source said the team would not match the contract because it contains a third year worth $14.8 million that would likely subject the team to the NBA's luxury tax.

Lin reportedly would make $5 million next season and $5.225 million during 2013-14 season. The Knicks have until Tuesday to match the Rockets' offer.

The second-year guard from Harvard became a sensation in New York after leading the Knicks to seven consecutive victories last season.

Lin became expendable when the Knicks have acquired point guard Raymond Felton on Saturday in a sign-and-trade deal with the Portland Trail Blazers that will also bring Kurt Thomas to the Knicks and send Dan Gadzuric and Jared Jeffries to the Blazers.

The Knicks also signed point guard Jason Kidd last week, but he said he thought he was coming in to mentor Lin.

Another source told ESPNNewYork that Lin was taken aback by the Felton trade.

"He was very surprised," the source said. "He felt the whole time that the Knicks would just match the offer."

Knicks guard Carmelo Anthony was not happy about the possibility that Lin might not return to the Knicks.

"It's not up to me. It's up to the organization to say that they want to match that ridiculous contract," he said. "I'd love to see him back, but I think he has to do what's best for him right now."

Added Jeffries: "I never thought they would let him go," he told ESPN New York via text message.