LeBron James has opted out of his contract with the Cleveland Cavaliers and will become a free agent on July 1, according to an ESPN report.

After his first season back in Cleveland, James is declining the $21.6 million player option for next season on his deal.

After the 2015-16 season, the salary cap and value for a maximum contract are expected to rise with an influx of revenue thanks to the league's new television contract with ESPN and Turner Sports.

The 30-year-old star averaged 25.3 points, 7.4 assists and 6.0 rebounds per game in his return to the Cavaliers after four seasons with the Miami Heat. James led the Cavs to their second NBA Finals appearance in team history and averaged 35.8 points, 13.3 rebounds and 8.8 assists in Cleveland's six-game loss to the Golden State Warriors.