The 39-year-old spent the past five seasons with the Dallas Mavericks but will now work under head coach David Fizdale, who was hired by the Knicks in May.
Per the Mavericks' official site, Canales was responsible for coordinating the team's offense while serving as an assistant.
Prior to his Dallas stint, he spent five seasons on the bench with the Portland Trail Blazers from 2008 to 2013, serving as an interim coach for 23 games in 2011-12 after Nate McMillan was fired. He went 8-15 as a 33-year-old in charge of the squad.
He also became the first Mexican-American head coach in NBA history.
As Joe Freeman of the Oregonian detailed, he began his NBA career as an unpaid video intern with the Blazers in 2004 before working his way up to interim coach.
Canales will now try to help improve a Knicks team that went 29-53 last season. The team hasn't reached the playoffs in the last five years and has changed head coaches four times in that stretch.