Los Angeles signed Hill to a two-year, $18 million deal last July. The second year of the deal is a team option.
If Los Angeles does not exercise the option, it would clear cap room for the team to pursue other targets in free agency.
From the report:
The Lakers are not obligated to make a final determination on the $9 million owed on Hill’s contract before June 30, but momentum is strong that they’ll allow Hill to enter into free agency, league sources told Yahoo Sports.
The 27-year-old was selected in the first round of the 2009 NBA draft out of Arizona.