The Grizzlies have extended the qualifying offer to Rudy Gay, making him a restricted free agent.

If Gay does not sign a contract, he will receive a $4,422,784 contract with the Grizzlies. He also would be able to veto any trade the Grizzlies agreed upon involving him.

Few players have played under the qualifying offer in recent years, with Ben Gordon being a notable exception.

Gay is expected to begin exploring his options in free agency after several of the more prominent players have signed.

Minnesota will be a team targeting him from the outset of free agency, with the Nets and Clippers also expected to be in contention.

As a restricted free agent, the Grizzlies have the right to match any offer sheet Gay might sign.

Grizzlies forward Rudy Gay will become a restricted free agent at midnight on Thursday.

Memphis owner Michael Heisley has repeatedly vowed to re-sign Gay by matching any offer sheet he might sign with another team.

Gay is expected to wait until the elite-level free agents sign with teams before seriously considering any offers.

Teams that are unsuccessful in signing the likes of LeBron James, Dwyane Wade, Chris Bosh, Joe Johnson, Amar'e Stoudemire, Paul Pierce and Dirk Nowitzki are expected to court Gay.

The Timberwolves will begin pursuing restricted free agent Rudy Gay once free agency begins late Wednesday night, according to a league source.

Minnesota executive David Kahn said Monday that he will make two calls to arrange meetings with unidentified free agents later this week.

Because of Gay's restricted free agent status, the Grizzlies will have the option to match any offer he receives on the market.

Grizzlies owner Michael Heisley says the team made a mistake when they passed on drafting DeJuan Blair last June.

"We should have taken him," Heisley said. "He was 15th on our list. But sometimes, in the heat of the moment, you get derailed. We got swayed by some discussions with the doctors. This year, we're going to take the guy who is next on our list or someone is going to have to do a very good job explaining to me why we're not."

Memphis has three picks in the first round of this year's NBA Draft to try and rectify their past mistakes.

"We think we're in a good position in a deep draft," said Heisley. "I can't tell you who we'll pick because I don't know who is going to be available when it's our turn. But we'll do whatever we can do to improve the team."

The Wolves appear determined to trade Al Jefferson.

Minnesota had been discussing making a trade of Jefferson for Zach Randolph, but talks are currently dead.

Randolph has one year remaining on his contract and Minnesota would possibly waive him.

The Grizzlies and Timberwolves are close to swapping first-round picks, a source has told ESPN.com's Andy Katz.

Memphis would send their 25th and 28th picks to Minnesota for the 16th selection.

The Grizzlies have inquired about Hornets point guard Chris Paul, but owner Michael Heisley strongly denies that O.J. Mayo was ever offered.

"Unequivocally, O.J. Mayo was not part of any discussions about a trade for Chris Paul," Heisley told the Memphis Commercial Appeal. "That is not true. Where do these people get this stuff?"

Yahoo! Sports reported on Monday that "The Memphis Grizzlies offered O.J. Mayo as part of a package for Chris Paul recently, but talks went nowhere."

Heisley acknowledged that he approached New Orleans about Paul's availability but insisted "Mayo was not part of the package that I talked to them about."

A report on Monday indicated that the Grizzlies approached New Orleans with a deal for Chris Paul centered around O.J. Mayo.

"Unequivocally, O.J. Mayo was not part of any discussions about a trade for Chris Paul," Heisley said Monday night. "That is not true. Where do these people get this stuff?"

Heisley acknowledged that he approached New Orleans about Paul's availability but insisted "Mayo was not part of the package that I talked to them about."

The Memphis Grizzlies signed General Manager and Vice President of Basketball Operations Chris Wallace to a multi-year contract extension, the team announced today.

?My family and I are very happy here in Memphis,? Wallace said after the Grizzlies? pre-draft workout this morning at the Coventry Health Care Practice Facility at FedExForum. ?We love this city and would love to be here a long time running. The team made real strides last year. I really like working with our front office, Head Coach Lionel Hollins and (owner) Michael Heisley. We're excited to stay here.?

Wallace, who joined the organization on June 18, 2007, was instrumental in building a Grizzlies roster that recorded a 16-game improvement in 2009-10, second only to the Oklahoma City Thunder.

Grizzlies general manager Chris Wallace is in the final year of his contract, which will expire on June 30.

The team has presented Wallace with a multi-year offer that only needs his signature to be finalized. The Grizzlies want a deal in place by next week's NBA Draft.

"We've discussed his situation, and we have a clear understanding of his contractual situation and his role in the company," Memphis owner Michael Heisley said. "I feel he's done a decent job."

Wallace declined to comment when asked Wednesday about a possible contract extension.