The Cleveland Cavaliers are set to offer LeBron James a multiyear maximum contract extension, according to team sources.

The period for the Cavaliers to extend the deal to LeBron started at 12:01 a.m. on Saturday morning.

If James is eyeing an extension for the maximum amount of money available, now would be the ideal time for him to sign the new deal.

The NBA's salary cap is widely predicted to go down substantially next offseason after falling more than a million US dollars this summer.

"Who knows what can happen by then?" an agent said, requesting anonymity. "Revenues may be high enough so they won't do anything. Nobody knows for sure. It's a projection."