"It appears the Hornets might be ready to live with Mike James as the backup point guard this season, allowing Jannero Pargo to sign with another NBA team, possibly the San Antonio Spurs.

Pargo's agent, Mark Bartelstein, said the Hornets "don't seem interested in signing (Pargo) at this point. I don't think he'll be back with them."

Hornets General Manager Jeff Bower on Tuesday declined to comment on any on-going negotiations with free agents.

Pargo, 28, opted out of his contract with the Hornets this summer to test the free-agent market.

Bartelstein said he really couldn't characterize the Hornets' interest or lack thereof in retaining Pargo, who last season was Coach Byron Scott's top reserve point guard. Pargo averaged 8.1 points and 18.7 minutes, playing in 80 games with five starts last season. In 12 playoff games, Pargo averaged 22 minutes per game and 10.2 points.

Pargo has drawn interest from at least two Western Conference teams, the Denver Nuggets and this week from the Spurs.

The San Antonio Express-News on Tuesday morning quoted Bartelstein as saying the parties have discussed options.

"The Spurs speak for themselves," Bartelstein told the newspaper. "It's a great place to play. They are limited in what they can do financially, but we are definitely talking to them. We're trying to get a decision, no question. We're working on it."

San Antonio spent most of its mid-level exception to sign former Washington Wizards point guard Roger Mason Jr., a Bartelstein client. But the Spurs still have a $1.9 million bi-annual exception they could spend on Pargo, who would have earned $1.08 million with the Hornets next season had he not opted out."