Report: J.R. Smith opts out of contract, has mutual interest with Cavs regarding new contract

According to Shams Charania of Real GM, Cleveland Cavaliers guard J.R. Smith has opted out of the last year of his contract and will enter free agency. Both the Cavaliers and Smith, however, are interested in coming to terms on a new deal that would keep Smith in Cleveland for the foreseeable future.

Smith's player option for next season was worth $6 million and would have been the last year of a three-year deal worth $17 million he signed with the New York Knicks in 2013. Smith signed that deal after being named NBA's Sixth Man of the Year at the end of the 2012-13 season. The Cavs acquired Smith in January from the Knicks.

Smith joins teammate Kevin Love, who also opted out of his deal today, in unrestricted free agency. LeBron James can also opt out of his deal with the Cavs in the next few days, but all three are expected to return next season.

Smith told both ESPN's Chris Broussard and the Northeast Ohio Media Group's Chris Haynes that he was planning to opt out at the end of the NBA Finals. With the Cavs, Smith averaged 12.7 points per game while 42.5 percent from the field and 39 percent from three.