James Harden agreed to a three-year, $97 million contract to remain with the Cleveland Cavaliers, two people close to the situation told The Associated Press on Thursday.

They spoke on condition of anonymity because the deal has not been announced. It includes a player option for the 2028-29 season as well as a trade kicker.

Harden declined his $42.3 million player option for the upcoming season, but he indicated after the Cavaliers were swept in four games by the eventual NBA champion New York Knicks in the Eastern Conference finals that he would like to return. He also wanted to wait until the Cavaliers were done making a couple moves before his new agreement was in place.

The 36-year-old Harden will be going into his 18th NBA season. He averaged 10.7 points and 1.7 turnovers for the Cavaliers in 26 regular-season games after being acquired from the Los Angeles Clippers for Darius Garland on Feb. 4.

Harden averaged 19.7 points in the postseason, but his turnovers also went up to 4.7 per game, including five or more in 10 of Cleveland’s 18 games. He also struggled on defense.

Cleveland’s starting lineup is likely to be Harden, All-Star Donovan Mitchell, 2025 NBA Defensive Player of the Year Evan Mobley, Jarrett Allen and Peyton Watson, who was acquired in a four-team trade Wednesday night.

Harden was arrested on June 13 in Houston on a misdemeanor charge of unlawful carrying of a weapon in a motor vehicle. The charge was dismissed earlier this month in Harris County criminal court after he completed an alternative resolution program.

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