Donnie Walsh, president of basketball operations for the New York Knicks iexpected to step down from his post when his contract expires at the end of the month, team owner James Dolan said in a statement.

Calling it a 'mutual' agreement between he and Walsh, Dolan said Glen Grunwald, a senior vice president will become the team's interim general manager beginning in July.

Following a long series of discussions regarding his future role with the New York Knicks, Donnie Walsh and I have mutually agreed that he will be leaving his position ... at the end of June, Dolan said.

Walsh overhauled the Knicks in the wake of the Isiah Thomas fiasco in 2008, replacing him on the operational side and hiring Mike D'Antoni on the coaching side.

His decision to leave comes as he had been negotiating a new contract with the Knicks, while never giving an indication that he sought to leave the team.

Walsh will continue to serve the team as a consultant next season.