LeBron James has declined the player option on the final season of his contract with the Los Angeles Lakers, making him a free agent when free agency begins Sunday, a person familiar with the decision told USA TODAY Sports.

The person requested anonymity because he was not authorized to speak publicly about James’ plans.

Despite the opt-out, it's expected that James will re-sign with the Lakers – especially after they selected his son Bronny with the 55th overall pick in the second round of the NBA draft Thursday.

James, who turns 40 on Dec. 30, could’ve exercised his player option and played the final year of his contract with the Lakers in 2024-25 for $51.4 million.

If James wants to stay a Laker − and he said as much at All-Star Weekend in February when asked by USA TODAY Sports − and have control over his future, opting out and re-signing with the Lakers on a three-year, $162 million deal is the best option.

He can include a no-trade clause in a new deal, which would silence any talk about the Lakers sending James to another team.

"I am a Laker, and I am happy and been very happy being a Laker the last six years, and hopefully it stays that way," he told USA TODAY Sports in February. "But I don't have the answer to how long it is or which uniform I'll be in. Hopefully it is with the Lakers. It's a great organization and so many greats. But we'll see. I don't know how it's going to end (NBA playing career), but it's coming. It's coming, for sure."

If James wants to play elsewhere, he can get a three-year contract worth $157.5 million. Now, there aren’t many teams with the kind of cap space available to sign James at the salary he wants. His agent Rich Paul, the CEO of Klutch Sports, shot down the idea of James signing a minimum contract to play for a contender. If James wants to remain on a competitive team, that narrows his options outside of the Lakers.

He averaged 25.7 points, 8.3 assists, 7.3 rebounds and 1.3 steals and shot 54% from the field and a career-high 41% on 3-pointers in 71 games in 2023-24 as he made the All-Star team for the 20th consecutive season and earned his 20th All-NBA selection.

The Lakers were eliminated from the playoffs by the Denver Nuggets for the second consecutive season – the Western Conference finals last season and first round this season.

James performed well in the playoffs, scoring at least 26 points in the five games, including 30 in Game 4 and 30 points, 11 assists, nine rebounds and four steals in Game 5, and shooting better than 50% from the field. But the gap between the two teams was exposed by Denver’s second-half execution and the Lakers’ slim margin of error.

Follow NBA reporter Jeff Zillgitt on social media @JeffZillgitt