Miami Heat star LeBron James's agent has informed the franchise that his client will exercise his early termination option and become an unrestricted free agent on July 1.

James had until June 30 to decide whether or not to opt out of the final two years of his contract with Miami, but he has previously insisted that he would welcome the opportunity to become a free agent.

"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.

Riley insisted that the front office would now discuss the situation with James, along with making plans with Dwyane Wade and Chris Bosh after the NBA Draft.