Moritz Wagner. Mike Watters-USA TODAY Sports

The Magic aren’t picking up their $8M team option for Moritz Wagner for next season, but both sides have an interest in negotiating a new contract, according to ESPN’s Adrian Wojnarowski (X link).

The decision means the 27-year-old big man will become an unrestricted free agent Sunday afternoon and will be free to talk with anyone. Wagner has spent the past four seasons in Orlando and presumably enjoys playing alongside his brother, Franz, so the team should have an advantage in trying to re-sign him.

The Magic are expected to be major players on the free agent market, and the extra $8M in cap room could turn out to be valuable. Orlando is projected to have more than $52M to work with and is considered to be a suitor for Clippers forward Paul George, who is declining his $48.8M option for next season.

One possibility for Wagner suggested by Yossi Gozlan of HoopsHype (X link) is for Orlando to use its $8M room mid-level exception to give him the same salary as his option. The team would have to exhaust its cap space before that pathway becomes available.

Wagner played an important role off Orlando’s bench this season, averaging 10.9 points, 4.3 rebounds and 1.2 assists in 80 games.

More must-reads:

TODAY'S BEST
Tyrese Haliburton’s father addresses his incident with Giannis Antetokounmpo
Patriots' Austin Hooper explains what teammates can expect from HC Mike Vrabel
Falcons to pick up star WR's fifth-year option
Falcons react to NFL levying fine against team and defensive coordinator Jeff Ulbrich
Insider names frontrunner in Browns' QB competition after drafting Shedeur Sanders
Yankees offense goes nuclear in blowout win
Giannis Antetokounmpo rips Tyrese Haliburton's father for 'disrespectful' act
Celtics make unique NBA playoff history in Game 5 win
How Steelers reportedly expect Aaron Rodgers saga will end
Juan Soto's bat speed decline threatens Mets' $765 million investment
NFL team executive expands on what Browns' Shedeur Sanders did wrong before draft
Insider suggests four-time Pro Bowl option for Steelers if Aaron Rodgers doesn't sign
Watch: Pacers, Tyrese Haliburton eliminate the Bucks in OT
Stanley Cup playoffs takeaways: Hurricanes advance, panic time for Maple Leafs
Jayson Tatum's historic game helps send Celtics to Eastern Conference semis
Pirates ace Paul Skenes explains why he's not concerned about potential injuries
Steelers may have found another steal in UDFA pool as Pittsburgh lands an athletic freak
49ers sign star TE to four-year extension
Spurs' Stephon Castle runs away with Rookie of the Year Award
Kings to make Doug Christie new head coach in full-circle moment