George recently relayed to the Pacers that he won't re-sign with the club after the 2017-18 season and added that he hopes to sign with the Lakers as a free agent.
With Thursday's NBA draft approaching, Indiana is investigating whether it can trade the four-time All-Star forward to the Lakers either before the draft or on draft night.
The Pacers are apparently asking for the No. 2 overall pick in the draft that belongs to the Lakers, as well as forward Brandon Ingram, who was the No. 2 overall pick in last season's draft.
The Lakers aren't interested in that scenario as they have the knowledge that George could be had on the free-agent market 13 months from now.
George, who averaged a career-best 23.7 points last season, has a major preference in joining the Lakers as he grew up in Southern California.
The 27-year-old George is from Palmdale, Calif., a desert town about 60 miles north of Los Angeles.
If George hits free agency, he will be eligible to sign a four-year, $130 million contract.
If George remained with the Pacers, he could receive a five-year, $177 million extension.
George has an 18.1 scoring average in parts of seven NBA seasons. He recovered from a serious compound fracture of his right leg in the summer of 2014 while playing for USA Basketball to regain his star status.