Stephon Marbury will be free to leave the New York Knicks after the two parties announced they had agreed on a buyout.

Marbury and the Knicks went before an arbitrator yesterday to settle an on-going feud which reached its peak when the guard was banished by the Knicks on December 1 after a falling out between the 31-year-old and Knicks president Donnie Walsh.

Prior to that Marbury was fined USD400,000 for refusing to enter a game against the Detroit Pistons on November 26.

Neither Marbury nor Walsh commented on the specifics of the agreement, but in a statement they did reveal that it encompassed the $400,000 grievance that the point guard had filed and will allow him to leave the Knicks to sign for another franchise.

"A comprehensive agreement was made this afternoon between the New York Knicks and Stephon Marbury," the Knicks and Marbury said in a joint statement. "Under its terms, the grievance has been resolved and the Knicks have requested waivers on Stephon. No additional terms will be disclosed."

By gaining his release before March 1, Marbury will be eligible to be acquired by a contender. The Boston Celtics have been rumoured to be interested, according to multiple reports.

Teams must wait for Marbury to pass through waivers, which takes 48 hours unless he is claimed.

Along with Hal Biagas, a lawyer for the players' union, Marbury was joined by Walsh and coach Mike D'Antoni at the arbitration.

New York have been asking Marbury to give back some of his salary since the seasons started. Marbury, however, has stated that he wants to honour his contract. The point guard did offer to slice $1million off what he was owed but then withdrew the offer.