The Miami Heat superstar won Olympic gold medals with Team USA at the last two Olympics and also won a bronze in Athens.
However, the 28-year-old will not play at the world championship in Spain next year and is unlikely to then push for a place at the Rio Olympics.
A source told Marc J. Spears of Yahoo! Sports: "LeBron is going to be three years older during the next Olympics. He will have two older boys. He has a lot to endure with his family.
"He played in three Olympics. Everyone that knows LeBron knows it's always based on a decision at that moment. But if the moment was today, the answer would be no.
"The only way I could see him playing in the Olympics is if his country really, really needed him to play.
"But hasn't he done enough?"
Kevin Durant of the Oklahoma City Thunder and Kevin Love of the Minnesota Timberwolves have already confirmed they will play at the worlds next year.
Durant's team-mate Russell Westbrook and former team-mate James Harden (now Houston Rockets) are also set to play, as are Kyrie Irving (Cleveland Cavaliers) and Paul George (Indiana Pacers)
LeBron James led the Miami Heat to their second successive NBA title this season – winning regular season and NBA Finals MVP in the process.