The San Antonio Spurs have been notified that Tim Duncan has decided to opt into his $5.6 million contract for 2016-17, but that he's still undecided about whether to return for a 20th NBA season, a source close to the situation told ESPN's Michael C. Wright.
The story was first reported by The Vertical and confirmed by ESPN.
When asked about his future following San Antonio's season-ending Game 6 loss to the Oklahoma City Thunder in the Western Conference semifinals, Duncan said he would "get to that after I get out of here and figure out life." He had until June 29 to pick up his player option or opt to become a free agent on July 1.
Duncan, 40, saw a drop-off in productivity last season, averaging a career-low 8.6 points and 7.3 rebounds in 61 regular-season games and then putting up 5.9 points and 4.8 rebounds over 10 playoff games.
Spurs general manager R.C. Buford was asked earlier this month if he was concerned about how decisions for Duncan and veteran guard Manu Ginobili would affect the team's plans going into free agency.
"We've been building scenario planning, not just for this season, but for every season," Buford said. "You have a variety of scenarios you hope you can execute on that are sequenced and need things to happen along the way. We'll be ready to answer the questions that are posed to us to hopefully find pieces within our abilities within collective bargaining that will help us build a competitive team."
The Spurs could shave $4 million off next season's payroll if they waive veteran forward Boris Diaw by Thursday's deadline, but sources told ESPN.com's Marc Stein that San Antonio intends to keep Diaw, which will make his $7 million salary fully guaranteed next season.
The Spurs will have to shed some guaranteed contracts via trade if they are fortunate enough to win the Kevin Durant sweepstakes, but sources told Stein that San Antonio's long-rumored interest in Memphis Grizzlies free-agent guard Mike Conley has been overstated.
Chicago Bulls free-agent big man Pau Gasol is indeed a secondary target for the Spurs, sources said, but they are not expected to pursue Conley.
Duncan's current two-year deal with San Antonio was for $5.25 million in his first season, with the $5.6 million option for 2016-17 and a no-trade clause.
Duncan led the Spurs to a championship in his second season, in 1999, and was named NBA Finals MVP. He would go on to win four more titles, in 2003, 2005, 2007 and 2014, and be named Finals MVP twice more, in 2003 and 2005.
San Antonio posted a win percentage of at least .600 in 19 straight seasons with Duncan, the longest such run in NBA history.
Information from ESPN's Marc Stein and The Associated Press was used in this report.