The 38-year-old German has spent his entire NBA career with the franchise, winning the league's Most Valuable Player award in 2007 and guiding them to a championship in 2011.
A seven-footer with the ability to shoot the ball, Nowitzki was influential in changing the way big men played the game, being a fore-runner of what became known as a stretch-four.
Meanwhile, Miami Heat guard Dwyane Wade has reportedly said he wants a $50 million two-year deal. Another one-franchise player, Wade won championships in 2006, 2012 and 2013, being part of the controversial "big three" alongside LeBron James and Chris Bosh.
However, the Heat have come up short, offering the star a $40 million deal. Meanwhile the Denver Nuggets have reportedly made him an offer in excess of $50 million, while the Chicago Bulls and Cleveland Cavaliers names have also been attached to the 34-year-old.
The Golden State Warriors have made another move a day after signing superstar Kevin Durant. They have picked up forward David West, signing the former All Star for a one-year $1.55 million deal, reports say.
The San Antonio Spurs have traded forward Boris Diaw to Utah to clear cap space and will receive the rights to last year's second-round pick Olivier Hanlan.
Pau Gasol confirmed he was set to join the Spurs, having verbally agreed to a two-year deal worth $30 million.
