Option #1 would be to sign him this summer.
Option #2 A and B. If they are within realistic reach of the playin then they keep him 100%. This organization needs to get to the post season in a bad way. You can't trade guys for future assets if you have a shot at the playoffs. Even if you know he will walk you keep him in this scenario.
If they are not close to the playin then you probably trade him. How receptive will he be to return to a team that didn't make the playoffs? If he keeps this up then he will have every good team in the league after him. Also, they do not have his Bird rights. So they can't offer better terms than anyone else.
It's a good problem to have.