LeBron James has reportedly told the Cleveland Cavaliers that he will re-sign with the team. However, it is not yet clear if he will agree to a one-year contract or a multi-year deal.

It probably wouldn't come as a surprise if James does sign with the Cavs. After all, he was the one who led Cleveland to its first championship in over 50 years.

Still though, fans got a bit worried after he opted out of the final year of his contract in June after the NBA Finals. But, as noted by Sports Illustrated, he probably did this just so the Cavs will have the time to sort out its cap space for its other free agents.

James is only one of the few Cavs members who are still unsigned by the team. There are no official announcements yet regarding the status of J.R. Smith and coach Tyronn Lue.

As for James' potential contract, it is not yet clear what type of deal he will sign. But according to ESPN, he has a few choices based on league rules. For instance, he could choose to re-join the team for a one-year contract worth 27.5 million or go for a multi-year deal that could go up to $30.8 million, which would make him the highest-paid player in the league next season.

Given the Cavs' current situation, it's probably best to offer James a one-year contract for now. That way, they'll still have a bit of leeway in terms of salary to sign other free agents such as Smith. In addition, through this move, Cleveland will be able to keep the core team that won the championship intact.

There are no official reports yet as to when James will sign his new contract with the Cavs since he is currently on vacation with his family. But once he gets back, he is expected to meet with his agent Rich Paul to discuss and iron out the various details of his deal with Cleveland.

Paul also represents Smith, but according to sources, the negotiations for the free agent's contract are different from those for James.