The Washington Wizards signed Jerry Stackhouse to a two-year extension yesterday but denied rumors that they had been given permission by the Milwaukee Bucks to talk with Ernie Grunfeld about the vacant job of president of basketball operations.
   However, several sources with knowledge of Grunfeld's situation maintained that Grunfeld would be released from his contract and that the Wizards did have permission to meet with him.
   "I have never met Ernie Grunfeld," Wizards owner Abe Pollin said. "I have not talked to him. The rumors are just what they are, rumors. I have talked to a lot of people, and I'm not discounting having talked to anybody. We did not have permission."
   According to sources, Grunfeld, who conducted the Bucks' draft last night, will be free to meet with the Wizards by Tuesday.
   Grunfeld, who joined the Bucks as general manager in 1999, guided the Bucks to the Eastern Conference finals in 2001. Surprisingly, Grunfeld was hired by the Bucks after the New York team he put together reached the NBA Finals in 1999. Grunfeld served as general manager of the Knicks from 1993 to 1999 before being fired.
   The Stackhouse situation was much more cut and dried.
   Stackhouse had until Tuesday to decide whether he would opt out of the final two years of his contact. Stackhouse, who had approximately $14 million coming to him over the next two seasons, will now earn between $32 million and $35 million through the 2007 season.