The Knicks have emerged as the favorite to sign 31-year-old Slovenian point guard Beno Udrih to a $1.27 million minimum contract, according to two sources. An announcement could come as soon as Thursday.

The Knicks will consider it a great value signing since Udrih made $7 million last season, leaving the Knicks long shots to land him. But the market apparently dried up for the left-handed veteran who has played on four teams, including Orlando and Milwaukee last season when he combined for 66 games.

The Knicks are looking for a third point guard to complement Raymond Felton and Pablo Prigioni. Being from Europe is another plus for Udrih, as Italy’s Andrea Bargnani is known to prefer hanging out with Europeans or foreign players.

Udrih averaged 8.2 points with 4.6 assists last season. He has also played with San Antonio and Sacramento, mostly as a backup. In 628 games, he has made 243 starts.

Wednesday, the Knicks worked out point guard Bobby Brown of the Italian League, but he likely will finish runner-up to Udrih, whom the Knicks prefer. Brown had already signed with a Chinese team but can break the deal by Aug. 15.

If Udrih signs, that would leave the Knicks with 14 players under contract after inking big man Jeremy Tyler on Tuesday. That leaves one roster spot available and it could become a battle in training camp with several invitees with non-guaranteed deals. Point guard Toure Murry impressed in summer league, but could be the odd man out if the Knicks nab Udrih.

“If he signs with the Knicks, the reasons will not be because of the money,” Udrih’s agent, Marc Cornstein, told The Post last week. “It would be a disservice to say they’re long shots or favorites. He’s examining the situations.’’

Memphis and San Antonio were also courting Udrih. Knicks general manager Glen Grunwald said last month a third point guard was important because of the possibility of injury to Felton or Prigioni. Plus, coach Mike Woodson could elect to start Prigioni and Felton in a two-point-guard backcourt if they had someone as reliable as Udrih behind them.

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Andrea Bargnani will sit out the three-game exhibition tournament for Team Italy that began Wednesday against Georgia because of lingering effects of a fever. Team Italy is prepping for September’s European Championships.