The player option is worth $11.6 million and he is expected to receive a considerable raise and a multiyear deal this summer.
Powell, 28, will have multiple suitors with the Trail Blazers, making re-signing the high-flying guard a top priority, sources said.
Portland traded for Powell midseason, sending Gary Trent Jr. and Rodney Hood to Toronto. Due to the Trail Blazers having two prominent guards in Damian Lillard and CJ McCollum, the 6-foot-3 Powell was forced to play out of position at the small forward spot.
The six-year veteran is coming off the best season of his career, averaging highs of 18.5 points and shooting 41.1% from beyond the arc collectively between Portland and Toronto.
He will be among the top guards in this free-agency class.
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