The Indiana Pacers will not pick up Marquis Daniels’ $7.5-million team option, a person with knowledge of the situation said today.

Daniels, who has spent the past three seasons with the Pacers, will become an unrestricted free agent July 1. His salary was seen as relatively high for a reserve. The Pacers could re-sign Daniels to a multi-year contract at a lower annual salary during the free agency period.

Daniels averaged 13.6 points and 4.6 rebounds in 54 games last season.All-Star Danny Granger and Brandon Rush are the Pacers’ only two healthy wing players under contract for next season. Mike Dunleavy is sidelined indefinitely after undergoing knee surgery in March.