Knicks owner James Dolan staged a business meeting with Isiah Thomas yesterday morning at the Mandarin Hotel in Midtown, according to a person familiar with the situation.

A band of security men surrounded the two men who were both dressed in business suits in a quiet corner of the lobby. Thomas has lobbied to return to the organization since he was fired as the Florida International basketball coach last spring. The meeting took place two days after the resignation of MSG sports president Scott O’Neil, who, according to a source, helped convince Dolan rehiring Thomas wasn’t a good move for the Knicks brand.

Thomas, who attended the Basketball Hall of Fame induction last night in Springfield, Mass., still lives at his home in Purchase, where he resided when he was Knicks president and coach during a disastrous reign from 2003-2008 that has made him a pariah with Knicks fans.

The Garden stated it would conduct a search for a new Garden sports president, which is a marketing position. It is possible Dolan was seeking Thomas’ advice on filling the position because he has maintained his friendship with Dolan. Hiring the unpopular Thomas would come at an odd time considering the franchise is dealing with the fan fallout of losing Jeremy Lin and are bracing for the Nets’ debut in Brooklyn.

Knicks coach Mike Woodson is down an assistant coach after Kenny Atkinson left for Atlanta, and it’s possible the meeting centered on Thomas returning in some sort of coaching consultant capacity during training camp, which begins Oct. 2.

Woodson, Thomas and Knicks general manager Glen Grunwald played together on the University of Indiana’s 1981 national championship team. The Post reported in April that Woodson and Thomas had dinner on the night Grunwald was promoted to permanent general manager.

Thomas was named a Knicks part-time consultant in August 2010, but commissioner David Stern blocked the move because it was a conflict of interest with Thomas’ college job. Nevertheless, Dolan released a statement at the time saying Thomas’ opinions still would be sought.

“I will continue to solicit his views,” Dolan said in the statement. “He will always have strong ties to me and the team.’’