He doesn't seem to be playing along. He is set to lose a big payday, whether it be due to legitimate injury or the Knick's making stuff up. That is the most likely reason why we haven't seen any new agreements reached yet.
Either way...the Spurs are gutted at guard. He has no incentive to come here, and the Spurs have no incentive to offer him money...especially just to do so out of spite.
Worst case scenario: Take the loss, and save the MLE for a buyout candidate.