LeBron James is reportedly prepared to take a pay cut if it means the Los Angeles Lakers can use their midlevel exception on a starry name.

It seems Klay Thompson is an increasingly likely option.

Jovan Buha of The Athletic said there is "mutual interest" between the Lakers and Thompson as the longtime Golden State Warrior prepares to hit free agency.

"There is mutual interest from Thompson's side. ... It seems like he wants to stay in the Western Conference, wants to stay on the West Coast. Again, with either L.A. team or with Dallas," Buha said (12:30 mark).

The Lakers' cap maneuverability will depend entirely on the type of contract James signs. The future Hall of Famer opted out of his contract and will be an unrestricted free agent Sunday, but he's widely expected to return to the Lakers on a new deal. Agent Rich Paul said James is open to taking a pay cut to help the Lakers build their roster.

"He is prioritizing a roster improvement," Paul told ESPN's Dave McMenamin on Saturday. "He's been adamant about exuding all efforts to improve the roster."

James would have to take a pay cut of around $16 million for the Lakers to have use of their full midlevel exception of $12.9 million. According to McMenamin, Thompson, James Harden and Jonas Valančiūnas are reportedly among the veterans James is willing to take the cut for.

While Thompson has longtime ties to the Lakers organization through his father, Mychal, his willingness to take the midlevel would be a surprise. Thompson reportedly declined a two-year, $48 million extension with the Warriors last offseason. Taking a deal for approximately half that number on an annual basis would be a clear sign the relationship between Thompson and the Warriors reached a point of no return, given the team would almost certainly top the midlevel to bring him back.