TORONTO — The Lakers on Thursday declined to pick up the $4.06 million third-year team option on second-year guard Jalen Hood-Schifino’s contract.

The deadline for the decision, which was first reported by NBA insider Chris Haynes, was Thursday.

The Lakers’ decision will make Hood-Schifino an unrestricted free agent during the 2025 offseason.

Hood-Schifino hasn’t been with the Lakers during their ongoing five-game road trip, which will continue today when the Lakers play the Toronto Raptors for the third game of the trip.

Hood-Schifino, the Lakers’ 2023 first-round draft pick, was assigned to the organization’s G League affiliate, the South Bay Lakers, before the trip started.

Maxwell Lewis, the Lakers’ 2023 second-round pick, has also been with South Bay.

For the Lakers, declining Hood-Schifino’s third-year option as part of the four-year, $17.9 million rookie scale contract he signed last summer could give them greater financial and roster flexibility going into next summer depending on their decisions ahead of the Feb. 6 trade deadline.

In addition to Hood-Schifino, four other Lakers are slated to become unrestricted free agents after the 2024-25 season: D’Angelo Russell, Christian Wood, Cam Reddish and Jaxson Hayes.

Just $100,000 of Lewis’ $2.2 million salary for 2025-26 is guaranteed.

LeBron James also has a $52.6 million player option for next season.

Depending on the Lakers’ moves, they could have access to the non-taxpayer mid-level exception next summer, which would be worth around $14 million.

Hood-Schifino, the No. 17 pick out of Indiana in 2023, averaged 1.6 points (22.2% shooting), 0.6 rebounds and 0.4 assists in 21 NBA regular-season games last season as a rookie and hasn’t played this season after appearing in preseason.

He had lower back surgery — a lumbar microdiscectomy procedure — in late March.

Hood-Schifino played 15 games for South Bay last season before having surgery, averaging 22 points (47.3% shooting, 43.2% from 3-point range), 5.3 assists and 4.3 rebounds.