LeBron James will not exercise his $24 million player option with the Cleveland Cavaliers for the 16-17 season to become a free agent.

James can re-sign with the Cavaliers and said last week he has no intentions of leaving Cleveland again.

"I love it here in Cleveland. I have no intentions of leaving," James told ESPN's Dave McMenamin during the Cavaliers' championship parade. "There are some technicalities to take care of I'll leave up to my agent. That's right from the horse's mouth."

Rich Paul gave no insight on Tuesday evening on the type of contract James will seek or his timetable for re-signing.

If James takes another one-year contract from the Cavs, he would make $27.5 million for next season. This is because the Cavs don't have salary-cap space and don't have James' full Bird rights, which limits the size of the raise he can get.