Four-times NBA champion LeBron James has opted out of the final year of his contract with the Los Angeles Lakers but is working on a new deal with the team, according to an ESPN report on Saturday.

While the decision means James will become a free agent on Sunday for the fourth time in his decorated career, his Lakers future is hardly in doubt given they selected his son in the second round of the NBA Draft on Thursday.

According to ESPN, James opted out of a contract worth $51.4 million for next season to become a free agent eligible to sign a maximum three-year deal with the Lakers worth $162 million.

According to ESPN, James opted out of a contract worth $51.4 million for next season to become a free agent eligible to sign a maximum three-year deal with the Lakers worth $162 million

But ESPN, which sourced James' agent Rich Paul, said the NBA's all-time leading scorer is willing to work with the Lakers on a deal below the maximum to better position the team to sign an impact player.

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"He is prioritizing a roster improvement," Paul told ESPN. "He's been adamant about exuding all efforts to improve the roster."

James had until 5 pm ET (2100 GMT) on Saturday to decide whether to opt into his player option for the 2024-25 National Basketball Association season.

Reuters was unable to reach Paul for comment while the Lakers did not immediately respond when asked to confirm the ESPN report.

In six seasons with the Lakers the four-times league MVP has averaged 27 points per game, eight assists and 7.9 rebounds.

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The Lakers finished seventh in the Western Conference this year with a 47-35 record and went on to lose to the defending champion Denver Nuggets in the first round of the NBA playoffs.