Young, 29, is seriously contemplating declining his $13.7 million player option for the 2018-19 season and becoming an unrestricted free agent, league sources told ESPN.
He has until June 29 to make a decision on the option.
Young's decision on whether to exercise his player option is rooted in searching out a longer-term contract in the prime of his career this summer. Young's value with the Pacers and elsewhere has been buoyed by his ability to guard multiple positions, a benefit in the evolving NBA game.
The Pacers could choose to negotiate a contract extension with Young, who plays alongside center Myles Turner for a resurgent Indiana franchise.
Turner will be eligible for a rookie contract extension later this year.
Young played a leadership role for the young Pacers this season, who earned the fifth seed in the Eastern Conference playoffs and pushed the Cleveland Cavaliers to a seven-game series in the first round of the Eastern Conference playoffs. Young averaged 11.3 points, 7.7 rebounds and 1.7 steals against the Cavaliers.