The person spoke to the AP on condition of anonymity Saturday because no announcement had been made about the decision, which means the Lakers will retain their selection in the first round of this year's draft on June 26, when they are slated to pick 17th overall.
It also leaves the Pelicans with only their own first-round pick at No. 21 in this year's draft.
Under the terms of the Davis trade, the Pelicans cannot wait beyond 2025 to use the pick, which is the last remaining Lakers asset they are owed from that deal.
The blockbuster trade shortly before the 2019 draft sent the Pelicans three Lakers players: Brandon Ingram, Lonzo Ball and Josh Hart. Only Ingram remains with New Orleans, but he is entering the final season of his contract.
The Pelicans won the draft lottery in 2019, when they selected Duke star forward Zion Williamson first overall. They then used the Lakers' No. 4 overall pick in a trade for the eighth and 17th overall picks, as well as the 35th overall choice in the second round.
With those, they drafted center Jaxson Hayes, guard Nickeil Alexander-Walker and guard Didi Louzada, none of whom are still with the Pelicans.
New Orleans used a second Lakers' first-round pick in 2022 to select Australian wing Dyson Daniels eighth overall.