CLEVELAND, Ohio -- LeBron James has informed the Miami Heat of his intention to opt out his contract, making him a free agent as of July 1, his agent Rich Paul confirmed to The Plain Dealer.

The move has long been speculated to be coming, but James informed the Heat of the decision to forgo the final two years on his contract before the June 30 deadline to do so.

James is scheduled to earn $42.7 million in the final two years of his deal with the Heat.

Though James spurned the Cavaliers in 2010 when he last was a free agent to sign with Miami, Cleveland has become a rumored destination for the four-time league MVP this off-season with a young core, All-Star point guard Kyrie Irving and plenty of salary-cap space.

In 2012, James said he would not rule out a return to Cleveland at some point in his career.

"I think it would be great, it would be fun to play in front of these fans again," he said before a Miami game in Cleveland two years ago.

James, of course, could also re-sign with the Heat, where he joined forces with Dwyane Wade and Chris Bosh in 2010. All three players have opt-out clauses this off-season, though James is the first to inform the Heat of his intention to exercise his.

Miami, however, is looking to save money. Last season, the Heat was well over the NBA salary cap of $58.7 million, with salaries totaling $80.7 million, according to hoopshype.com. Miami also was over the luxury tax threshold set at $71.7 million.