James controversially left the Cavaliers for the Miami Heat in 2010.
The 2003 first-round pick went on to enjoy great success in Miami, winning two NBA titles as the Heat dominated the league thanks to their fabled 'big three', which saw James partnered with Dwyane Wade and Chris Bosh in an imposing starting line-up.
However, the Heat's reign came to an end in last season's play-offs, when they lost the NBA finals to the San Antonio Spurs in five games.
The 29-year-old then opted out of his contract with the Heat late last month and has now confirmed his intention to return to his home state of Ohio.
"I looked at other teams, but I wasn't going to leave Miami for anywhere except Cleveland," James wrote in an essay for Sports Illustrated.
"The more time passed, the more it felt right. This is what makes me happy."
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