Houston Rockets guard Fred VanVleet intends to sign a two-year, $50 million contract to stay with the franchise, with a player option in 2026-27, sources told ESPN.
The Rockets are declining VanVleet's $44.9 million team option for next season, the sources said, and now secure a new deal with VanVleet's representative, Klutch Sports CEO Rich Paul.
VanVleet's new deal gives the Rockets flexibility over the next year and gives him the opportunity to enter the 2026 free agency market where there will be more salary cap space for teams. Both sides believe in a partnership for years to come beyond the two years, sources said.
VanVleet, 31, returns to a Rockets roster recently bolstered by the blockbuster trade for 15-time All-Star Kevin Durant.
It's been a busy offseason for the Rockets, who also agreed to a three-year, $39 million extension with center Steven Adams and a long-term extension with coach Ime Udoka in recent weeks.
VanVleet, a one-time All-Star and former NBA champion (2019 with the Toronto Raptors), has helped spearhead the Rockets' turnaround from lottery team to playoff contender in his two seasons with Houston.
An immediate fit after signing a three-year deal with the team in the summer of 2023, VanVleet helped Houston improve from 22 wins to 41 in his first year. The Rockets then won 52 games to grab the No. 2 seed in the Western Conference this past season, ending a four-year postseason drought.
He averaged 14.1 points in the 2024-25 season, his fewest in a season since 2018-19, but averaged 18.7 points per game in the playoffs. The Rockets were ousted in the first round by the Golden State Warriors in seven games, but that wasn't because of VanVleet -- he averaged 24.3 points on 56% shooting and 64% on 3-point attempts in the last four games of the series.
VanVleet is a hard-nosed defender who succeeds on offense through playmaking and volume 3-point shooting -- he was second on the team in 3-point attempts per game this past season with 7.7. He tends to struggle with efficiency, however, and shot below 40% from the field in 2024-25 for the fourth time in his career.
The nine-year veteran has averaged 14.9 points and 5.7 assists in his career.