New York Knicks guard J.R. Smith will decline his option with the team but hopes to re-sign with the Knicks under a longer contract, reports The New York Times' Howard Beck on Twitter.
Smith signed with the Knicks midway through last season and averaged 12.5 points per game in 35 games with the team.
Smith had until Tuesday to decide if he wanted to exercise his option to return under a one-year, $2.44 million deal.
Earlier this offseason, Smith told Newsday's Al Iannazzone that he liked being close to his native New Jersey.
"I want to be here so I'm not really putting too much emphasis on it," he said. "I got money now. It's all about winning, and whatever is the best situation and the best fit really. If all things are equal, I'm staying."