Free-agent guard Gary Payton is expected to decide Tuesday whether he will accept the Lakers' mid-level exception, according to a source.

The Lakers remain Payton's top choice, although the Miami Heat remain a possibility -- but only if the Heat give Payton all of their available room under the salary cap --around $11 million for next season. In addition, Payton would only sign with the Heat if he had assurances that Miami also would re-sign free-agent center Alonzo Mourning.

The source also indicated that the Indiana Pacers are trying to put together a sign-and-trade offer to Milwaukee, Payton's current team.

Portland also is looking to put together a sign-and-trade offer to Milwaukee, believed to be center Arvydas Sabonis and guard Jeff McInnis. Sabonis, who is not expected to return to the NBA next season, would be waived by Milwaukee under that scenario.

If Payton opts to go to the Lakers, free-agent forward Karl Malone likely will join him there. If Payton doesn't, Malone likely will consider accepting an offer from the San Antonio Spurs.

David Aldridge, who covers the NBA for ESPN, is a regular contributor to ESPN.com.