ESPN reporter Shams Charania was first to report the development, citing Klutch Sports CEO Rich Paul.
James will enter free agency to join a new team, according to ESPN. Sources told Charania on Monday that the Golden State Warriors were planning to pursue James once the free agency negotiating window begins Tuesday afternoon.
Lakers share heartfelt farewell
"LeBron James is one of the greatest athletes in history," said Jeanie Buss, part of the Lakers' ownership group. "We will always be thankful for his eight years with the Lakers, including the title he led us to in 2020 under the toughest imaginable circumstances, and the countless records he broke in purple and gold. We wish him all the best in the future, both on the court and off. He will always be a cherished part of the Lakers family."
Draymond Green declined his $27.6 million player option Monday, opening up the flexibility for the Warriors to pursue James and a possible trade with the Washington Wizards for Anthony Davis, which would reunite the former Lakers teammates with Golden State.
What could be next for LeBron?
What could be next for LeBron James?
The 41-year-old James could have returned for a ninth season with the Lakers or retired as arguably the greatest basketball player of all time. Instead, he will choose a new team -- likely the last of his storied career.
James, who will turn 42 in December, saw his record 21-year All-NBA streak snapped last season as he played in just 60 games after missing the first month because of sciatica affecting his lower back and down his right leg.
The four-time champion and four-time MVP will be entering what many consider to be the final chapter of his first-ballot Hall of Fame career while maintaining a level of performance unheard of for any other aging player.
James was an All-Star last season, averaging 20.9 points per game on 51.5%, 7.2 assists and 6.1 rebounds. He was equally effective in the postseason, upping his playing time from 33.2 to 38.4 minutes per game and averaging 23.2 points, 7.3 assists and 6.7 rebounds. He led L.A. to a first-round series win over the Houston Rockets while Luka Doncic was sidelined with a hamstring strain.
Doncic reacted to James' departure on social media, writing in a post to his Instagram Story that it was "an honor to play with and learn from you @kingjames."
ESPN contributed to this report.