Lou Williams intends to opt out and become a free agent at the end of the season, according to a source with knowledge of the situation.

Said the source: "He's indicated that he's not going to pick up his option. All indications are that he's going to opt out."

Williams has not informed the Sixers of his plans.

"He has not said what he will do, but we will react to that when the time comes," general manager Rod Thorn said.