MEMPHIS — The Warriors will convert guard Damion Lee’s two-way contract to a standard NBA deal within the next few days, coach Steve Kerr said.

Lee, who is out for Sunday’s game in Memphis, used his final day with Golden State allotted under his two-way contract in Friday’s loss to the Clippers in Los Angeles. The Warriors are postponing signing him in order to maximize their remaining space under the hard salary cap, but will do so by Wednesday.

Any contract Lee signs will be prorated for the remainder of the season and, therefore, the more days the Warriors wait, the less it will count against the salary cap.

“Basically, for cap purposes, he’s not going to sign for a couple more days,” Kerr said.

After Lee signs, the Warriors will fill his vacated two-way contract position. Kerr said they have already identified who that player will be, but the team is not disclosing that information. The last day NBA teams can sign two-way contracts is Jan. 15, so the Warriors can wait until then to officially make the two roster moves.

[Read more: Inside the summer that changed Damion Lee’s career]

Players signed to two-way contracts mid-season do not get the full 45-day allocation of NBA days. Instead, they have a prorated amount of NBA days to use. In this case, at the halfway point of the season, it would be around 20. Two-way contract do not count against the salary cap.