LeBron James informed the Miami Heat that he is opting out of his contract that would pay him $20.6 million next season, meaning he will become a free agent on July 1.

So now that he will have his choice of teams, where will James end up? Here are his best options:

Miami Heat

They are the top option for a variety of reasons. The Heat can offer James the longest and most lucrative contract. If Chris Bosh and Dwyane Wade return, that's still a pretty good core. He has won two championships with the Heat and more are possible if the Heat make the right roster improvements. It's Miami. He and his family like it there. The Heat should be front-runners.

Chicago Bulls

If the Bulls are interested in Carmelo Anthony, why not James? Chicago met with James in 2010, and a core of James, Derrick Rose and Joakim Noah would be outstanding. But the Bulls would have to amnesty forward Carlos Boozer, trade Mike Dunleavy, trade one of their two first-round draft picks, eliminate some non-guaranteed contracts to free up the cap space to offer James an enticing contract.

Houston Rockets

General manager Daryl Morey is a dreamer and a dealer, and it will take a good dose of both for the Rockets to sign James. It starts with convincing James that he, Dwight Howard and James Harden can play together — offensive and defensively — then Morey needs to create salary cap space, and that means trading Omer Asik and Jeremy Lin.

Cleveland Cavaliers

The Cavs are always going to get mentioned because of the possibility James returns to his hometown team and erases the bad feelings from his 2010 departure. But winning titles sooner rather than later still remains at the top of James' priority list, and the Cavs are not championship-ready now. A first-year coach (David Blatt) with no previous NBA experience and a first-year GM (David Griffin) aren't strong selling points.