Cleveland Cavaliers guard James Harden is declining his $42.3 million player option for the 2026-27 season. The Cavs and Harden are working on a new multi-year deal.

Harden's contract would have become partially guaranteed for just over $13 million had he opted in for next season. The expectation has been that the veteran guard would opt out to sign a new long-term deal with Cleveland. The Cavs are likely to benefit by bringing Harden's contract number down for next season, which will help the team as they work around the first and second apron.

The Cavaliers acquired Harden at last season's trade deadline for Darius Garland and a second-round pick. Harden then averaged 19.2 points, 5.1 rebounds, 5.5 assists and 1.7 steals per game in the 2026 NBA Playoffs, as Cleveland made it to the Eastern Conference Finals.