Swingman Shandon Anderson, who had his moments last season as a defensive stopper, is in the process of completing negotiations to return to Miami for a third season, agent Dan Fegan said Monday.

Like veteran point guard Gary Payton, Anderson is expected to sign for the veteran's minimum of $1.2 million, which would count only $745,000 against the salary and luxury tax, a dollar-for-dollar penalty coach Pat Riley has vowed not to exceed.

Anderson is still due $8.5 million for this season from the Knicks, in the final year of the contract New York waived amid a 2004 disagreement with Knicks President Isiah Thomas.

Anderson, who turns 33 on Dec. 31, had hinted at retirement in the wake of the Heat's championship celebration, but instead is seeking to return for an 11th NBA season.

"That's the goal we're working toward," Fegan said. "I would like to have something done soon."