Former New York Knick star Dean “The Dream” Meminger, who suffered lung damage in a Bronx fire, was transferred yesterday to a special burn unit at Jacobi Hospital, sources said.

Meminger’s condition had improved enough for doctors to move him to the unit, which is equipped with a special hyperbaric chamber to help the 62-year-old ex-basketball champ recover from his injuries.

Firefighters managed to pull Meminger from his smoke-filled Findley Avenue apartment on Sunday, but were blocked by flames from re-entering.

Because his home and six others have been deemed unstable, investigators have been unable to return and determine the fire’s origin, officials said.

Police Commissioner Ray Kelly and fire officials denied a report that crack pipes were found in Meminger’s apartment and that they caused the fire.