According to Brett Cyrgalis from the New York Post (yes, I said the Post. I think he's from the Post. I've never actually met him) Evgeni Nabokov will test free agency.
Take a look at the twitter feed:
Brett Cyrgalis @BrettCyrgalis 12m
Talks between the #Isles and Nabokov have come to a standstill. The soon-to-be 38yo goalie with test the free agency market come July 5
He also threw in this one if anyone was asking about Luongo:
Brett Cyrgalis Brett Cyrgalis @BrettCyrgalis 5h
League source says #Isles not one of the teams inquiring about Luongo. That certainly doesn't mean they won't try to upgrade in net
Also, according to TSN's Bob McKenzie, the Isles have not made any notification there will be a buyout of Rick DiPietro.
Okay, Who the heck will be playing Goal???
6:05 pm: Okay, Art Staple has now chimed in after speaking with Nabokov who told him his first choice is still the Islanders but...."We couldn't find the middle ground right now..."