The veteran Oklahoma City Thunder point guard was previously floated as a possible Bucks target to pair alongside Giannis Antetokounmpo in the wake of Milwaukee's disappointing second-round playoff exit.
Paul, who turns 36 in May, is owed $41.3 million next season with a player option worth $44.2 million for 2021-22.
The Bucks currently have $114 million in guaranteed salary on the books for next season, which is projected to be over the NBA's post-COVID-19 salary cap. The team's most tradable player is likely Eric Bledsoe, who is owed $35 million over the next two seasons.
Bucks co-owner Marc Lasry reportedly met with Antetokounmpo last week and pledged to spend into the luxury tax to help keep the star with the franchise.
Antetokounmpo is eligible to sign a super-max extension this offseason. If he doesn't, the Bucks risk losing him for nothing as an unrestricted free agent in 2021.