The Miami Heat are declining the $15 million team option on forward Andre Iguodala's contract for next season, a source told ESPN's Adrian Wojnarowski, but the team picked up the $19.4 million team option on guard Goran Dragic, it announced Sunday.

The Heat's decision to pick up the Dragic's option is a possible precursor in utilizing him as part of a potential sign-and-trade with the Toronto Raptors for Kyle Lowry, sources told Wojnarowski.

Iguodala, 37, will now be a free agent. He averaged 4.4 points, 3.5 rebounds and 2.3 assists in 63 games for the Heat last season, his second with the franchise. The 17-year veteran has career averages of 11.6 points, 5.0 rebounds and 4.2 assists.

Dragic, 35, averaged 13.4 points, 4.4 assists and 3.4 rebounds for the Heat last season, his seventh in Miami. The 14-year veteran has career averages of 13.9 points, 4.8 assists and 3.1 rebounds.