LeBron James' agent Rich Paul has informed the Miami Heat that the four-time NBA MVP will exercise his early termination option and become an unrestricted free agent on July 1.

Opting out does not mean that James has decided to leave the Heat, sources said.

James had until June 30 to decide whether to opt out of the final two years of his contract with Miami. He was scheduled to make $20 million next season and had two years and about $42.7 million remaining on his deal.

"I was informed this morning of his intentions. We fully expected LeBron to opt out and exercise his free-agent rights, so this does not come as a surprise," Heat president Pat Riley said in a statement. "As I said at the press conference last week, players have a right to free agency and, when they have these opportunities, the right to explore their options.

"The last four seasons have been historic, and LeBron James, Dwyane Wade, Chris Bosh and Erik Spoelstra have led the Miami Heat to one of the most unprecedented runs in the history of the NBA. We look forward to sitting down with LeBron and his representatives and talking about our future together. At the moment, we are preparing for the opportunities in the draft and free agency as we continue with our goal of winning NBA championships."

After Miami's season-ending loss to the San Antonio Spurs in Game 5 of the NBA Finals, James told reporters he would take a vacation with his family before considering his contract options.