The Golden State Warriors and restricted free-agent forward Draymond Green have broken off contract talks, a source told Yahoo Sports on Wednesday.

The Warriors met with Green and agent B.J. Armstrong in Los Angeles after 12:01 a.m. ET on Tuesday when NBA free agents could first begin negotiating with teams, a source told Yahoo Sports. The Warriors were given the first opportunity to reach a contract agreement before Green considered talking with other teams. But with the breakdown in talks, Green is now open to meeting with other franchises immediately, the source said.

The Warriors can still match any offer sheet Green signs because he is a restricted free agent.

[Related: Get the latest with our complete 2015 NBA free-agency tracker]

Green, 25, averaged career-highs in points (11.2), rebounds (8.2), assists (3.7) and minutes (31.5) this past season for the Warriors. The Saginaw, Mich., native also started in a career-high 79 games while helping the Warriors earn their first championship since 1975.

Green was a second-round pick of the Warriors in 2012 and has made a combined $2.6 million during his three NBA seasons. He has been projected to make close to a maximum contract during free agency, which can increase his salary more than six times.

The free-agent market has already had some surprising splashes that would appear to benefit Green.

Forward DeMarre Carroll has agreed to a four-year, $60 million contract with the Toronto Raptors. The Milwaukee Bucks agreed to a five-year, $70 million contract with guard Khris Middleton.

Green is considered a bigger free agent than Carroll and Middleton. The Warriors have been surprised by the contracts offered to Carroll, Middleton and Hawks All-Star forward Paul Millsap, who was offered a four-year, $80 million contract from the Orlando Magic, a league source said.

The Warriors are expected to endure the luxury tax next season, with already $83 million in committed salary, which is currently projected to be the highest in the NBA. Golden State could lower its financial commitments by trading forward David Lee, who will make $15.4 million in the final year of his contract next season. The Warriors also have financial ramifications ahead in their quest to build a new waterfront arena in San Francisco.

Green's home state Detroit Pistons, the Atlanta Hawks and the Houston Rockets have shown interest in him, a league source told Yahoo Sports prior to the start of free agency. There are now a minimum of five teams interested in Green outside the Warriors, a source said.

"The one thing I've been taught is to go into this thing with no expectations," Green told Yahoo Sports this week. "When you do, that's when it gets frustrating. That's when it gets stressful. I just want to have fun and enjoy this process.

"So I'm not going in there with no expectations for this or expectations for that. That would take away the enjoyment. And that's what I want, I want to enjoy this."

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