LeBron James is to join the Los Angeles Lakers in a four-year deal worth $154m (£116m), his camp have announced.
The four-time NBA MVP informed the Cleveland Cavaliers on Friday that he was not exercising his $35.6m (£26.8m) option and was becoming a free agent.
The Cavaliers had hoped to re-sign James, who has appeared in eight consecutive NBA Finals. The Philadelphia 76ers reportedly also had strong interest in the 33-year-old, who is regarded as one of the greatest players in NBA history.
A tweet from James' management company, Klutch Sports group, read: "LeBron James, four time NBA MVP, three time NBA finals MVP, fourteen time NBA All Star, and two time Olympic gold medallist has agreed to a four year, $154 million contract with the Los Angeles Lakers."
Shortly after the announcement, James posted a three-photo tribute to Cleveland fans on his Instagram account.
"Thank you Northeast Ohio for an incredible 4 seasons," Akron-native James wrote. "This will always be home."
James will join a Lakers team, which has missed the playoffs for five consecutive seasons, the longest streak in franchise history.
The Lakers, who are now coached by Luke Walton, have won 16 championships, including back-to-back titles in 2009 and 2010 with Phil Jackson as coach.