Wolves GM David Kahn is in talks with the Knicks about a trade, according to Darren Wolfson of 1500 ESPN Twin Cities, though it's unclear which players are being discussed (Twitter link). Wolfson tweets his suspicion that Ronnie Brewer could be headed to Minnesota, but that appears to simply be an educated guess, as the Wolves made an offer to Brewer over the summer before he signed with the Knicks. Both teams have full rosters with 15 players, limiting flexibility, but the Knicks may be looking to add depth to their front line, while the injury-depleted Wolves could use some healthy bodies.
Wolfson speculates via Twitter that a long list of Knicks, including Carmelo Anthony, Tyson Chandler and Jason Kidd, are probably off-limits in any trade conversations. The Knicks are a taxpaying team while the Timberwolves are well below the tax line, but given that New York is in title contention while Minnesota is probably looking toward next season, I don't think the Knicks are looking to pawn off any salary. Coincidentally, the Knicks are one of a few teams that reportedly has interest in Lou Amundson, whom the Wolves just waived.
The Wolves have been shopping Luke Ridnour, according to Chris Sheridan of SheridanHoops.com, but the Knicks, like the Wolves, seem set at point guard, with Raymond Felton, Kidd and Pablo Prigioni around to man the position. The Wolves' most glaring need seems to be at the two, and while shooting guard Iman Shumpert's name has been linked to the Suns, it appears that rumor came from Phoenix's side.