LeBron James has reportedly decided not to exercise his $51.4 million player option with the Lakers for the upcoming season, opting instead to negotiate a new contract with the team. A source familiar with the situation disclosed this decision on Saturday.

According to the source, terms of the new contract could be finalized swiftly. The person spoke anonymously to The Associated Press because neither James nor the Lakers had publicly announced the decision. ESPN, The Athletic, and the Los Angeles Times also reported on James’ choice earlier in the day.

This move precedes the NBA’s free agency period, officially commencing at 6 p.m. Eastern on Sunday. Despite this, numerous contracts worth over $1.2 billion have already been agreed upon under new league rules allowing teams to discuss new deals with their existing players shortly after the NBA Finals concluded.

It was widely anticipated that LeBron James would become a free agent, although his intention to remain with the Lakers was also anticipated.

Recently, the Lakers drafted Bronny James, LeBron’s eldest son, in the second round, setting the stage for a potential historic father-son duo in NBA history. A new contract for LeBron James might involve accepting a lower salary to provide the Lakers with more financial flexibility for other transactions.

LeBron James, a four-time NBA champion, is nearing the $500 million mark in on-court earnings, a first in league history. Combined with his off-court ventures and investments, his total net worth has been estimated to exceed $1 billion for some time.

Approaching his 40th birthday in December, LeBron James will match Vince Carter’s record for the most NBA seasons played this upcoming season, marking his 22nd year in the league. Last season, he averaged 25.7 points, 7.3 rebounds, and 8.3 assists, making him the league’s oldest active player.