8:48pm: The Jazz will pick up its option on Tinsley, Smith confirms (Twitter link).
7:33pm: Smith tweets that the Jazz will pick up Tinsley's option, while Kennedy says via Twitter that the situation is now uncertain despite the team having told Tinsley earlier today that they would decline the option. The two sides will speak tonight, according to Kennedy.
7:29pm: The Jazz will retain forward DeMarre Carroll, tweets Brian T. Smith of The Salt Lake Tribune, while HoopsWorld's Alex Kennedy tweets that the Jazz will turn down its $1.35MM option on point guard Jamaal Tinsley. Smith refers to the Carroll move as the team picking up an option, but Carroll's contract was actually non-guaranteed for next season. In any case, the Jazz will have Carroll at the minimum $885,120 for 2012/13.
The decision to let go of Tinsley comes on the heels of an agreement to acquire Mo Williams via trade, as Kennedy notes. The team also has Earl Watson, another point guard, under contract for next season. Tinsley averaged 3.7 points and 3.3 assists per game with a 10.9 PER last season as a backup to Devin Harris. Carroll put up 4.8 PPG and 2.5 RPG with a 10.1 PER for the Jazz after he was signed at midseason.