Guard Jose Alvarado declined his $4.5 million player option and inked a new three‑year contract worth just over $14 million to stay with the New York Knicks. Sources told ESPN’s Shams Charania the deal was finalized on June 26, and Alvarado celebrated on X with orange and blue hearts, confirming his return.

Acquired from New Orleans on Feb. 5, Alvarado entered the Knicks as a backup to Jalen Brunson. He saw a larger role in Game 4 of the NBA Finals, contributing eight points and three assists during the fourth quarter of the historic 29-point comeback that turned a 107‑106 loss into a win over San Antonio.

Alvarado’s new deal locks a hometown player into the Knicks’ roster through the 2028‑29 season, giving New York a versatile guard familiar with the system. His postseason experience and chemistry with Brunson provide depth as the club targets another deep playoff run, and the contract solidifies the front office’s commitment to retaining home‑grown talent.

Fans greeted the news with excitement, noting Alvarado’s gritty play helped clinch the Finals comeback. The contract, modest by market standards, leaves cap flexibility for the Knicks to pursue additional pieces. Retaining a local product also strengthens the team’s identity in a crowded New York sports market.