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The Knicks are some damn fools if they don’t take this trade.

Carmelo Anthony could have been a Knick Monday if only team president Donnie Walsh were willing to meet Denver’s trade demands, which one team official classified as “steep.”

According to a team source close to the negotiations, “there is a deal to be made” but whether Anthony joins forces with Amar’e Stoudemire in New York between Tuesday and the Feb. 24 trade deadline likely comes down to the Nuggets either lowering their asking price or the Knicks turning over their roster to acquire one of the NBA’s top players.

The Nuggets, according to a source, are asking for three starters – including Danilo Gallinari and Raymond Felton – plus Eddy Curry’s expiring contract and at least one first-round pick. In that proposed deal, Anthony and veteran point guard Chauncey Billups would be coming to the Knicks.

It is believed that Walsh and Mike D’Antoni feel the team would be giving up too much. Garden chairman James Dolan has had direct involvement in the negotiations and may ultimately overrule his basketball staff.

The teams have nine days to play their game of chicken and the Knicks continue to debate if they should trade for Anthony now or take their chances on signing him as a free agent this summer.

This has always been the Knicks problem, pussyfooting. Hard to believe that the same franchise that gave Allan Houston all that damn money is scared to trade for one the top players in the league. GM Donnie Walsh better figure it out soon, that MSG crowd is getting reeeeal restless.

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