Point guard Jordan Farmar has exercised his $4.25 million player option and will be a Brooklyn Net next season, a league source confirmed to ESPN NewYork.com.
The story was first reported by the Newark Star-Ledger.
Farmar, 25, averaged 10.4 points and 3.3 assists for the Nets last season in 39 games.
The Nets now have three guards under contract for 2012-13: Farmar, Anthony Morrow and MarShon Brooks.
They traded up on draft night to acquire combo guard Tyshawn Taylor, who was selected 41st overall by Portland in the second round.
The league source told ESPN NewYork.com that the Nets -- assuming they re-sign Deron Williams (unrestricted) Brook Lopez (restricted), Gerald Wallace (unrestricted) -- would have $8.1 million left to spend in free agency.