CLEVELAND, Ohio -- The Cavaliers will extend a $3.4 million qualifying offer to Rodney Hood and make him a restricted free agent, league sources told cleveland.com.

The Cavs had until the end of the day Friday to make the offer. If it hasn't gone out yet, it will. The move means Cleveland can match any offer Hood receives from another team.

Hood, 25, is one of two free agents the Cavs can pay more than $5.3 million to sign. The other is LeBron James. Cleveland traded for Hood on Feb. 8 as part of a roster-reshaping effort by general manager Koby Altman; the trade allows the Cavs to pay him beyond the veteran's minimum or the team's mid-level exception to the salary cap.

Hood is averaging 13 points and three rebounds in four pro seasons -- mostly with the Utah Jazz. He was having a career year before the Jazz shipped him to the Cavs (for Jae Crowder, as part of a three-team trade), averaging 16.8 points.

When Hood arrived on the Cavs, he averaged 10.8 points during the regular season and struggled mightily during the playoffs, to the point he fell out of coach Tyronn Lue's rotation.

Most NBA insiders said Hood cost himself lots of money with his postseason struggles, limiting the contract offers he might get this summer (he averaged 5.4 points, shot .167 from 3, and his plus-minus of minus-93 was the worst of the playoffs). But Hood rejoined the rotation for the last two games of the Finals, and the Cavs view him as a part of their future, a source said.

Even without James, the Cavs are over the league's projected $101 million cap, and can't be expected to make a big splash in free agency -- which starts Sunday.

In addition to their mid-level exception ($5.3 million), the Cavs also have a trade exception of about $5.8 million.

Altman has made it clear he wants to see how his young roster, with Hood, Jordan Clarkson, Larry Nance Jr., and new draft pick Collin Sexton matures with a full season together -- a season that would be all the more fruitful if James chooses to return as a free agent.

James must decide on his $35.6 million option on his contract with the Cavs for next season by Friday at 11:59 p.m.

The Cavs' plan entering the draft and free agency was to build for the future in a way they thought would appeal to James -- who they say can take all the time he needs to make his decision.

"I think LeBron has more than earned the right to approach his contracts the way he does," Altman said last week. "He's done that before, so this is nothing new for us. We want to respect his space during this process and I continue to have really good dialogue with his management team as he goes through that process."