Report: J.R. Smith to decline player option

J.R. Smith is set to hit the market for a second straight summer.

Smith plans to decline his $5.4 million player option for 2016-17 and become an unrestricted free agent in July, sources tell Chris Haynes of Cleveland.com.

The deadline for Smith to pick up his option is June 16. Smith told Haynes that he would like to re-sign with Cleveland.

Smith made a similar decision last summer when he turned down a $6.4 million option to test the market. However, that gamble backfired as there wasn't a significant demand for his sharpshooting services.

He would eventually return to Cleveland on a two-year deal worth $10.3 million, thereby forcing him to eat a loss of $1 million in salary for the 2015-16 season.

The 30-year-old would vastly outproduce his contract in his first full season in Cleveland. He ranked seventh league-wide on 3-pointers with 204 makes and showed marked improvements as a defender.

His production, along with a ballooned salary cap, should see Smith earn a significant raise. However, the Cavaliers have the highest payroll in the league and project to be deep in the luxury tax for the 2016-17 season.