LeBron James intends to opt out of the final year of his contract with the Los Angeles Lakers worth $51.4 million for next season and work out a new deal with the team, a source familiar with his plans told ESPN.

James, 39, has until 5 p.m. ET on Saturday to inform the Lakers of his official decision.

The Lakers are committed to keeping James with the franchise and would be interested in offering the four-time MVP up to the maximum three-year, $162 million contract he is eligible for, sources told ESPN.

L.A. drafted James' eldest son, Bronny James, with the No. 55 pick in the second round of the NBA draft Thursday.

James averaged 25.7 points, 8.3 assists and 7.3 rebounds in 71 games this past season -- the most games he has played in six seasons with the franchise. He shot 54% from the field and a career-best 41% from 3 as he was named to the All-NBA third team and became the first player in league history to surpass 40,000 points.

Lakers star big man Anthony Davis, who has played five of those six seasons with James in L.A., said he has purposefully not put pressure on James regarding his decision this offseason. The two will pair up in the Paris Olympics this summer, too.

"I'm just respecting his space," Davis told ESPN this week. "I know we'll be together all summer and I know if he decides to do something -- whether stay with the Lakers, opt in or opt out and re-sign or opt out and choose a different path, I know he'll tell me before he makes any [official] decision just because we have that relationship. So I'm pretty sure I'll know before anybody else besides, like, his family and Rich [Paul]."