The Milwaukee Bucks and guard Jrue Holiday have reached a four-year, $135 million extension that includes bonuses that could take the deal to $160 million, agent Jason Glushon told ESPN's Adrian Wojnarowski on Sunday.
The deal includes a player option for the fourth year in 2024-25, according to Glushon.
"I'm a Buck for life," Holiday said in a video posted on the Bucks' Twitter account. "Just know that I'm glad to be a part of Bucks Nation. Let's do some big things, man. I'm really excited."
The move represents the latest step in the Bucks' heavy investment in their trio of Holiday, two-time reigning MVP Giannis Antetokounmpo and two-time All-Star Khris Middleton as the franchise chases its first NBA title since 1971.
"Jrue is one of the top guards in the NBA and we are thrilled to sign him to this extension," Bucks general manager Jon Horst said in a statement announcing the agreement. "Adding him to our team has made us better on both ends of the floor. He's an elite defender and an impactful offensive player with the ability to score, shoot and facilitate."
Holiday had a $26.7 million player option remaining for the 2021-22 season as part of the five-year, $126 million contract he signed with the New Orleans Pelicans in July 2017.
Under the terms of this deal, Holiday declines that option but will make more than $30 million next season, with his salary rising each year until his $37 million option for 2024-25.
"We are grateful for the time we've been able to spend learning about the Bucks organization, our team and the greater Milwaukee community," Holiday and his wife, Lauren Holiday, a former U.S. women's national team player, said in a statement. "We appreciate how Jon, Coach Bud and the entire staff, along with our teammates and fans, have supported us since the trade to Milwaukee. We have a special group that wants to put in the work and compete for a championship every year."
The Bucks' investment in Holiday, Antetokounmpo and Middleton -- even without incentives -- totals $105 million in 2021-22, $113 million in 2022-23 and would be $120 million in 2023-24 if Middleton exercises a player option for that season.
Holiday, 30, is averaging 17.0 points, 5.4 assists, 4.6 rebounds and 1.8 steals this year in his first season with the Bucks. He ranks second in the league in steals per game.
Milwaukee paid a heavy price to acquire Holiday in the offseason as it attempted to strengthen the team in hopes of getting a long-term commitment from Antetokounmpo, who signed a five-year supermax extension worth $228 million in December.
The Bucks gave up guards Eric Bledsoe and George Hill, first-round draft choice R.J. Hampton and two future first-round picks as part of the four-team trade. They also acquired second-round pick Sam Merrill and gave New Orleans the right to swap two future first-round picks as part of the deal.
Milwaukee posted the NBA's best regular-season record each of the past two seasons but lost in the Eastern Conference finals in 2019 and in the second round of the playoffs last year. Entering Sunday, Milwaukee (32-17) was two games behind Philadelphia and Brooklyn in the East standings.
This extension comes at a time when Holiday is playing his best basketball of the season. The 6-foot-3 guard has scored at least 22 points in each of his past four games. He had 33 points, 11 assists and 7 rebounds Saturday as the Bucks won 129-128 at Sacramento without Antetokounmpo, who sat out with a sore left knee.
The Associated Press contributed to this report.