James Harden declined his $42.3 million player option for the 2026-27 season on Monday.
He is set to become an unrestricted free agent this offseason.
What happened?
Harden's decision to decline the option was reported by ESPN's Shams Charania.
Charania added that the sides are working through a new multiyear deal together.
Why it matters for James Harden
The 11-time All-Star helped the Cleveland Cavaliers finish fourth in the Eastern Conference.
He averaged 20.5 points, 4.8 rebounds, and 7.7 assists in 26 regular-season games.
What comes next?
NBA insiders Marc Stein and Jake Fischer reported that there's an expectation that the Cavs and Harden should soon reach a verbal agreement on a multiyear deal.
The Cavs acquired Harden from the Los Angeles Clippers in exchange for point guard Darius Garland and a second-round draft pick.
Harden's primary goal is to win an elusive NBA championship.
He fit seamlessly next to star guard Donovan Mitchell, and elevated the production of veteran center Jarrett Allen.
The Cavs went on to get swept by the eventual NBA champion New York Knicks in the conference finals.
Harden shot just 29.9 percent from beyond the arc during the postseason.
At this stage in his career, Harden is still one of the top offensive players in the league.
He would have garnered significant interest on the open market.
However, it appears that he feels that staying with the Cavs gives him his best chance to win his first career NBA title.
Harden averaged 19.2 points, 5.1 rebounds, 5.5 assists, and 1.7 steals during the playoffs.
The Cavs finished the regular season with a 52-30 record.
Harden's decision to decline the contract option and pursue a new deal is a significant development in his career.