The New York Knicks liked Mike Woodson so much they never even considered calling Phil Jackson during their coaching search.

So said Knicks GM Glen Grunwald on Friday night, when the team named Woodson their next head coach.

Woodson, who served as interim head coach for the final 24 games of the regular season and the playoffs, signed a multiyear extension on Friday. The Knicks did not disclose terms of the deal, but sources told ESPNNewYork.com's Stephen A. Smith that Woodson's deal includes two guaranteed years and a third-year option, worth approximately $4 million per season.

"I'm very humbled and honored to continue coaching the franchise where I started my NBA career," Woodson, who was drafted by the Knicks in 1980, said in a statement. "Our goal is to build off the success we had at the end of last season and to continue our quest of bringing an NBA championship to Madison Square Garden."

Woodson took over as coach of the Knicks on an interim basis when Mike D'Antoni stepped down March 14. Under Woodson, the Knicks finished the regular season 18-6 and in seventh place in the Eastern Conference.

He coached the team to a win in Game 4 of its first-round playoff series against the Miami Heat, which snapped the franchise's NBA-record 13-game postseason losing streak.

"Mike took over the team under challenging circumstances and made it clear, starting on Day One, that he was going to hold every player on our roster accountable," Madison Square Garden chairman James Dolan said in a statement. "We saw a significant improvement since Mike took over and believe our team will only keep improving under Mike's direction."

When D'Antoni first stepped down, Phil Jackson, the former Knicks player and Bulls and Lakers coach, and Kentucky coach John Calipari were mentioned as potential replacements.