Photo: Peter Baba

The Cavaliers are reportedly working to create enough financial flexibility to make a competitive offer to LeBron James after he informed the Lakers that he plans to leave in free agency.

A key part of Cleveland’s strategy could involve James Harden, who declined his $42.3 million player option and is expected to re-sign with the Cavaliers.

However, Harden is reportedly delaying a new agreement to help preserve the team’s salary cap flexibility.

As currently constructed, Cleveland can offer James only the veteran minimum.

If Harden agrees to a new contract starting around $30 million, the Cavaliers could move closer to creating room for the $15 million non-taxpayer midlevel exception.

To make that possible, Cleveland is reportedly attempting to trade Max Strus, who is owed $16.6 million next season.

Moving his contract without taking back salary would give the Cavaliers a realistic path to offering James the full midlevel exception.

The Warriors are pursuing a similar strategy after Draymond Green declined his player option, with Golden State also exploring ways to create enough cap flexibility to pursue James.