iphone backup option not showing in iTunes

I am in the process of moving an older iphone 5s to a new phone. I want to back it uo in tunes and restore to the new phone.

When I plug it into my mac mini, it shoes up in iTunes ok. But when I right click on the iphone it only has "set up as new phone" or it lists an old back up to restore.

Do I select "set up as a new phone" to be able to back it up ? I am afraid of wiping it if I do this.

thanks