Four-time all-star Penny Hardaway exercised an option to void the last three years of his contract with the Magic and will become a free agent on July 1.

Hardaway, who averaged 15.8 points, 5.7 rebounds and 5.3 assists this season, complained after an early playoff exit that he was underappreciated and said a change of scenery seemed like a logical solution.

"As expected, Penny has exercised his option," GM John Gabriel said. "We will see what the future holds. We would like to re-sign him."

Hardaway was due $26 million over the last three years of his current contract. The most he could earn in a new deal would be $85 million over seven years, although only Orlando and Chicago -- which has lots of salary cap room -- could offer a package in that range.

The Magic hired Doc Rivers to succeed Chuck Daly on Monday, and the new coach said he would welcome Hardaway back next season if that's what the star guard wants.

"I consider Penny a part of this organization. The key for us is we want to make sure he wants to be here," Rivers said. "He's had his ups and downs. The one thing that no one questions is his talent."