Free agent James Harden has agreed to a new three-year, $97 million contract to return to the Cleveland Cavaliers, with a player option for 2028-29 and a trade kicker, agents Mike Silverman, Troy Payne and Brandon Grier of Equity Sports told ESPN on Thursday. Harden's career earnings will now reach $511 million, making him the fourth player in NBA history to eclipse the $500 million mark, joining the Philadelphia 76ers' Le Bron James, the Houston Rockets' Kevin Durant and the Golden State Warriors' Stephen Curry.

Harden turns 37 on Aug. 26, and when the 11-time NBA All-Star officially signs, he will become the second player in league history to sign for over $90 million in guaranteed salary at age 37 or older, with James being the other. The new contract will take Harden, who is entering Year 18, into a 20th NBA season. In June, Harden declined his $42.3 million player option. But at the outset of free agency, he and his agents worked with the Cavaliers on two- and three-year structures on a new deal.

The Cavaliers needed Harden to lower his annual salary in a three-year deal, versus a more costly two-year deal, in order to get under the first and second aprons -- as well as to give Cleveland the time necessary late into the offseason to trade for Peyton Watson, which the Cavs executed Wednesday, sending Max Strus to the Clippers, and their 2031 first-round pick and a 2032 second-round pick via the Sacramento Kings to the Denver Nuggets in a five-team deal.

Last week, the Cavs dealt guard Dennis Schroder to Charlotte in return for Tre Mann, who was ultimately flipped to Washington as part of the aforementioned five-team deal. Harden played a key recruiting role with Watson during his restricted free agency, staying in active communication to push him to Cleveland, according to sources. The Cavaliers will now boast a starting lineup of Harden, Donovan Mitchell, Watson, Evan Mobley and Jarrett Allen.