Deron Williams, who was traded from the Jazz to the Nets in February, has decided he will not be re-signing with New Jersey at season’s end, but instead opt-out and become a free agent.

“Deron will not be signing the extension,” Jeff Schwartz told The Record this afternoon. “Based on the new rules it doesn’t make any sense for him to sign the extension. It has nothing to do with how much he likes New Jersey. Because of the rules, he’s going to play the season out and opt out of his deal.”

So much for the dream of Williams loving life on the East Coast and attempting to lure Dwight Howard to the Nets.

Remember when everyone hailed Nets’ owner Mikhail Prokhorov as wise for not over-paying for Carmelo Anthony (the Knicks did) and then swooping in to land Williams? Well, it’s looking like Prokhorov took a big risk and it didn’t pan out. He gave up 2010 1st round draft pick Derrick Favors and two future 1st round draft picks in the deal for Williams. And in return he gets … zip.

But wait! The Nets will have ample cap room next summer to pursue … ha! All the stars want to team up these days, so I’d imagine some of the best players in the league are pining to play alongside Brook Lopez. Good luck, Prokhorov.

Previously: If the Nets Splurged for David West, Would Deron Williams and Dwight Howard Be Impressed?