" Stephon Marbury and the Knicks reached an agreement today on a buyout settlement during an arbitration hearing over the point guard's $400,000 fine, according to an NBA source.

Marbury was waived hours after meeting with team president Donnie Walsh today at a Midtown law firm.

Marbury left the Times Square offices skipping across the street in glee, posing for a Post photographer before heading off.

Marbury did not comment to a handful of reporters.

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

Marbury, 32 last Friday, is expected to sign with the Celtics. He told The Post last month he has a verbal commitment from Boston.

Marbury has been banished from the Knicks since Dec. 1, days after refusing Mike D'Antoni's offer to be his starting shooting guard during a meeting in Detroit on Thanksgiving Eve.

Marbury is the last Knick from their last playoff team in 2003-04, but his hometown stint was an abject failure after the initial burst he gave the team after a Jan. 5, 2004 trade from Phoenix.

Marbury will be remembered more for his feuds with Larry Brown, Isiah Thomas and D'Antoni than what he did on the court. Fearful of Marbury's past, D'Antoni came out of preseason and decided he did not want him as part of the program."