The multi-player deal will see guard Raymond Felton and forward Kurt Thomas return to the Knicks. Forward Jared Jeffries, center Dan Gadzuric, a 2016 second-round pick, the rights to Georgios Printezis and Kostas Papanikolaou and cash considerations will head to Portland.
Felton played part of the 2010-11 season with the Knicks before being traded to the Denver Nuggets.
Felton and Thomas will join Marcus Camby, another ex-Blazer involved in a sign-and-trade, in New York.
Felton, 28, was signed on a three-year, $10 million contract.
In 60 games with the Trail Blazers last season, Felton averaged 11.4 points, 6.5 assists and 1.3 steals per game. He could replace current Knicks' guard Jeremy Lin, who may be heading to Houston if New York does not match his offer sheet.
Thomas, 39, is in the final year of his veteran's minimum contract. In 53 games with the Blazers last season, he averaged 3.0 points, 3.5 rebounds and 0.9 assists per game.
CBS Sports reported that the Blazers will waive Gadzuric in his final year of a non-guaranteed contract. Gadzuric, 34, played in two games for the Knicks last year, recording five rebounds in 6.5 minutes of play.
The Blazers received cash considerations for Jeffries' contract of $1.4 million. In 39 games for the Knicks last season, Jeffries, 30, averaged 4.4 points per game and 3.9 rebounds per game while being limited because of knee injuries.
The two Greeks in the deal, Georgios Printezis, 27, and Kostas Papanikolaou, 21, have never played in the NBA.
Printezis has traveled around the league, but has spent most of his professional career playing in Greece. Papanikolaou, the two-time Greek League Young Player of the Year, was drafted by the Knicks in the second round of the 2012 NBA Draft.
This trade with the Knicks is likely one of many deals to come in the Olshey era of Blazers basketball. The Blazers were able to acquire a draft pick, Jefferies and two possible bench players in exchange for a pair of veterans who can easily be replaced.