Per multiple reports, VanVleet and the Rockets have agreed to a two-year, $50 million extension. VanVleet had a team option for next summer, but this contract will keep him with the team until 2026-27. The new deal will include a player option, per reports.

The Rockets turned down Fred VanVleet’s team option and are re-signing him to a lower annual rate, which gives Houston more offseason spending tools.

By declining VanVleet's $44.9 million team option and re-signing him to a longer deal, the Rockets save on next season's payroll, which now includes Kevin Durant's hefty salary.