I've always heard that the softer the surface, the easier it is on the joints. (knees, ankles, hips.) So dirt > running track > asphalt > concrete. (> = better than.) I'd assume that treadmill would be a softer surface than any of those things, so my guess would be "yes."
That said, what would be even better for your knees is to not run on consecutive days and do something lower impact on your "off" days. I prefer the arc trainer.

Also, make sure you're always running in good shoes, not ones that are "kicked" from keeping them too long.