The Knicks are sending center Robin Lopez, guard Jose Calderon and guard Jerian Grant to Chicago, which is shipping guard Justin Holiday, Rose and a 2017 second-round pick back to New York, sources said.
The Chicago Tribune first reported the deal.
ESPN reported last week that the Knicks had internal discussions recently about trading for Rose, the NBA MVP for the 2010-11 season.
Both Knicks coach Jeff Hornacek and general manager Steve Mills had said that the team was interested in upgrading their point guard position in the offseason.
Rose will be a free agent after the 2016-17 season. He averaged 16.4 points on 42.7 percent shooting and 4.7 assists in 66 games in 2015-16.
The six-year veteran has appeared in just 50 percent of the Bulls’ regular-season games over the past four years because of various injuries, including two major knee surgeries.
The Bulls have scheduled a 5 p.m. ET news conference Wednesday.