Golden State Warriors star Stephen Curry has agreed to a two-year, $116 million contract extension, tying the franchise legend to the only organization he has ever known through his 20th NBA season. The deal includes a player option in the final season (2028-29), according to sources. Curry is currently on an expiring $62.6 million contract and became eligible Aug. 29 for an extension for up to two years and $136.7 million.

As part of the Warriors' presentation to Curry, the team laid out various paths that included the idea of a slight pay cut from his max, delivering them more salary cap room to build a contender around him in the future. Curry's contract will dip from $62.6 million next season to $55.7 million for the 2027-28 season and a player option for $60.2 million in the 2028-29 season. That will provide the Warriors with around $10 million extra in projected cap space next summer, allowing them to be a bigger player in either free agency or the trade market in the next 12 months.

Currently, Jimmy Butler III ($56.8 million) and Draymond Green ($27.6 million) both have expiring contracts coming off the Warriors' books next summer. Veteran center Kristaps Porzingis has only $3 million of his $20 million salary guaranteed, leaving the Warriors somewhere between $38 million and a projected $55 million in cap space, depending on what they do with Brandin Podziemski's extension eligibility. Podziemski, who has yet to extend, has a $17 million cap hold next summer.

Curry took nearly a month to decide whether he wanted to sign for his full max, accept a slight pay cut or wait to agree to a new deal. Curry, who turns 39 this season, missed 39 games because of a persistent right knee issue last season but said he felt great entering camp. The extension brings Curry's career on-court earnings to $652 million, making him the first player to eclipse $600 million in NBA history.