Paul had a midnight ET deadline to decline the option and become an unrestricted free agent.
Paul was faced with the decision after coming just two wins away from the first championship of his 16-year career in his first season with the Phoenix Suns.
The 11-time All-Star is coming off a season in which he averaged 16.4 points on 49.9 percent shooting (39.5 percent from 3), 8.9 assists and 1.4 steals per game
Following the Suns’ Game 6 loss to the Milwaukee Bucks in the NBA Finals, Paul seemingly hinted at interest in staying in Phoenix to help the Suns get over the hump.
“I think for me, I just look at myself and figure out how can I get better, what I could have done more and make sure I come back next season ready to do it again,” he said.
ESPN’s Dave McMenamin contributed to this report.