On July 9, 2010, Felton agreed to a contract with the New York Knicks.
Two days later, the deal was finalized for two years and $15.8 million.
Felton was selected as co-captain for the 2011 season alongside fellow free agent signee Amar'e Stoudemire.
Early in the year, Felton had trouble working the pick-and-roll with Stoudemire.
But after a few games, Felton gained confidence and in no time was a fan-favorite in New York City.
Felton hit a number of clutch shots, including a step-back fade-away three-pointer that pinballed into the net against the Toronto Raptors.
The change of scenery seemed to be helping Felton; his play also saw the Knicks in playoff contention for the first time since 2004.
Felton's time in New York, however, would not last long.
On February 22, 2011, Felton was traded to the Denver Nuggets in a three-way deal which also involved the Minnesota Timberwolves that brought Carmelo Anthony to New York.
The deal sent Felton along with teammates Wilson Chandler, Danilo Gallinari, and Timofey Mozgov to the Denver Nuggets.
With the Knicks, Felton was on pace to have his best season ever.
Felton also registered a fair number of All-Star votes by fans.
Felton averaged 17.1 points, 9.0 assists, 3.6 rebounds, and 1.8 steals per game in 38.4 minutes a game.
In Denver, Felton was utilized mostly off the bench behind fellow University of North Carolina guard Ty Lawson.
Felton and the Nuggets made it to the playoffs where the Nuggets went up against Kevin Durant, Russell Westbrook and the Oklahoma City Thunder.
Felton averaged 11.6 points, 6.5 assists and 1.8 rebounds in the postseason.
As a whole, 2010–11 was Felton's best season; he averaged 15.5 points per game and 8.6 assists per game.

Felton, however, expressed dissatisfaction of playing off the bench and behind Lawson.
On June 23, 2011, during the 2011 NBA draft, Felton was traded to the Portland Trail Blazers for veteran point guard Andre Miller and the #26 overall selection in the draft, Jordan Hamilton from the University of Texas.
In the deal, the Trail Blazers also dealt Rudy Fernández and the rights to Finnish guard Petteri Koponen.
On July 9, 2010, Felton agreed to a contract with the New York Knicks. Two days later, the deal was finalized for two years and $15.8 million. Felton was selected as co-captain for the 2011 season alongside fellow free agent signee Amar'e Stoudemire. Early in the year, Felton had trouble working the pick-and-roll with Stoudemire. But after a few games, Felton gained confidence and in no time was a fan-favorite in New York City. Felton hit a number of clutch shots, including a step-back fade-away three-pointer that pinballed into the net against the Toronto Raptors. The change of scenery seemed to be helping Felton; his play also saw the Knicks in playoff contention for the first time since 2004. Felton's time in New York, however, would not last long. On February 22, 2011, Felton was traded to the Denver Nuggets in a three-way deal which also involved the Minnesota Timberwolves that brought Carmelo Anthony to New York. The deal sent Felton along with teammates Wilson Chandler, Danilo Gallinari, and Timofey Mozgov to the Denver Nuggets. With the Knicks, Felton was on pace to have his best season ever. Felton also registered a fair number of All-Star votes by fans. Felton averaged 17.1 points, 9.0 assists, 3.6 rebounds, and 1.8 steals per game in 38.4 minutes a game. In Denver, Felton was utilized mostly off the bench behind fellow University of North Carolina guard Ty Lawson. Felton and the Nuggets made it to the playoffs where the Nuggets went up against Kevin Durant, Russell Westbrook and the Oklahoma City Thunder. Felton averaged 11.6 points, 6.5 assists and 1.8 rebounds in the postseason. As a whole, 2010–11 was Felton's best season; he averaged 15.5 points per game and 8.6 assists per game.
Felton, however, expressed dissatisfaction of playing off the bench and behind Lawson. On June 23, 2011, during the 2011 NBA draft, Felton was traded to the Portland Trail Blazers for veteran point guard Andre Miller and the #26 overall selection in the draft, Jordan Hamilton from the University of Texas. In the deal, the Trail Blazers also dealt Rudy Fernández and the rights to Finnish guard Petteri Koponen.
Raymond Felton