Carmelo Anthony Opts Out of his Contract With the Knicks

Carmelo Anthony has decided to opt out of the final year of his contract with the New York Knicks and become an unrestricted free agent.

While Carmelo Anthony could re-sign with the Knicks — who can offer the most money — the Lakers, Heat, Rockets and Bulls are all interested in the small forward.

Carmelo Anthony will notify the Knicks on Monday, via mail, that he is opting out of the final year of his contract and that he plans to test the free agent market.

The source said Anthony’s reps had sent a letter via FedEx to the Knicks on Friday stating their client’s intentions to terminate his contract, which would have paid him $23.5 million in 2014-15.

Anthony has been steadfast in his plans to become an unrestricted free agent and said throughout the season that he would exercise the early termination clause in his contract. Knicks president Phil Jackson had asked Anthony to considering “opting in” and giving him and new head coach Derek Fisher the chance to show Anthony that they are committed to building a winner.

Anthony’s decision does not mean he won’t return to the Knicks, who have the ability to pay him up to $129 million over five years while any other team can only offer him a max of four years, $96 million.

Anthony’s preference is to remain in New York but he is worried about being part of another rebuilding season.