Gasol could have opted out to enter free agency, but he will instead finish out the remainder of his contract with the Raptors. The big man enters the final season of a five-year deal he originally signed with the Memphis Grizzlies in 2015.
The Grizzlies traded Gasol to the Raptors at the end of February in exchange for Jonas Valanciunas, C.J. Miles, Delon Wright and a second-round draft pick.
With the Raptors, the 34-year-old center averaged 9.1 points, 6.6 rebounds and 3.9 assists per game and shot 44.2 percent from 3-point range. In 79 regular-season games between the Grizzlies and Raptors, he averaged 13.6 points, 7.9 rebounds and 4.4 assists per game.
During Toronto's run to its first NBA championship in franchise history this season, Gasol averaged 9.4 points and 6.4 rebounds per game and was one of the team's top perimeter threats.
Raptors superstar forward Kawhi Leonard also has a one-year player option on his contract and he must make a decision before Saturday's deadline. League sources told Yahoo Sports that Leonard is expected to decline the option and become a free agent.
Toronto sharpshooter Danny Green also is slated to become a free agent.