GREENBURGH, N.Y. (AP) – Isiah Thomas got a multiyear contract extension Monday, nine months after he was warned the Knicks needed to show “evident progress” or he’d be out of a job.

With the Knicks in the hunt for a playoff spot, Madison Square Garden chairman James Dolan went back on his vow to wait until after the season to make his decision, saying that Mr. Thomas would return as coach and team president.

Mr. Thomas added the coaching duties to his other role in June after Mr. Dolan fired Larry Brown following one season. But along with the job came the ultimatum, though Mr. Dolan never publicly said what the Knicks needed to do this season to show that progress.

“We were all well aware of the circumstances coming out of last year as far as the ultimatum to win,” point guard Stephon Marbury said.

But with New York (29-34) already six wins better than last season and currently eighth in the Eastern Conference, Mr. Dolan said the improvement is substantial and Mr. Thomas “needs to be recognized now and not wait.”

“I believe we have clearly seen significant and evident progress,” Mr. Dolan said.

Mr. Dolan’s announcement comes well ahead of schedule. When he met with the team’s beat writers in December, he stressed that he wouldn’t make a decision until after the season. However, the Knicks were 8-15 at the time and coming off a dismal home loss to Boston a night earlier in which they trailed by 30 points.

Things quickly got worse for Mr. Thomas, as the Knicks lost twice more that week – the second coming in the brawl with Denver that embarrassed the organization – to fall to a season-worst eight games under .500.

Mr. Dolan has since been impressed by a turnaround that has the Knicks on pace to make the playoffs after a two-year absence. They entered Monday with a half-game lead over Orlando for the final spot in the East.

More than the record, Mr. Dolan praised Mr. Thomas for getting the team to play together and for the improvement in the Knicks’ young players. Second-year forward David Lee has become one of the NBA’s best sixth men, and Eddy Curry has turned into one of the top centers in the East.

Mr. Thomas said Mr. Dolan told him of his decision Sunday night. Neither he nor Mr. Dolan would give any details of the deal, or when the old one was set to run out. They did say Mr. Thomas would stay on in both positions.

“I feel good that the uncertainty about my professional situation is cleared up,” Mr. Thomas said after practice. “But again the most important thing is that we keep our team moving forward and we stay focused and continue to try to get into the playoffs.”

Mr. Dolan said there was a “crisis at the end of last season,” referring to the poor relationship between Mr. Brown and many of the players. That contributed to New York’s 23-59 record, which tied for the most losses in franchise history.

But the players have rallied behind Mr. Thomas, with Mr. Dolan pointing to the last 10 days, when the Knicks have had to play through injuries to Jamal Crawford and Mr. Lee, two of their top players.

“All the players kind of took it upon themselves, being that he had a hand in bringing all of us here,” Mr. Curry said. “We all felt like it was our duty to go out here and play hard and try to perform and give him some kind of security.”

Mr. Curry’s play is crucial to Mr. Thomas, since he gave up so much to get him in a trade with Chicago before last season. The Knicks included a first-round pick that turned into the No. 2 choice in last year’s draft, and gave the Bulls the right to swap picks this season – meaning Chicago could have a lottery selection in what is considered a deep draft if New York falters down the stretch.

Mr. Thomas has been a successful NBA coach, leading the Indiana Pacers to the playoffs in all three of his seasons. But his record as an executive hasn’t been nearly as good, and there were plenty of “Fire Isiah!” chants last season during games, as well as the night of the NBA draft.

New York is still without a playoff victory since Mr. Thomas arrived in December 2003, despite the largest payroll in the league. The free agents he signed over the last two seasons, Jerome James and Jared Jeffries, have both struggled with the Knicks.

Mr. Dolan shook off the criticisms of Mr. Thomas’ work in the front office, saying “nobody’s perfect.” However, Mr. Thomas acknowledged that he had begun to worry about the reputation he built as a player, when he led the Detroit Pistons to a pair of NBA titles during a Hall of Fame career.

“I was more concerned about the respect of myself as an individual than I was job security, the what I stood for in the game of basketball and the way my basketball legacy has been,” Thomas said. “I didn’t want to have a failure here. That was my concern, not necessarily if I was going to have a job.”

Notes:@ Mr. Lee, who has missed the last seven games, was not at practice Monday. The Knicks said he was getting a second opinion on his sore right leg and is expected back Tuesday.