The Los Angeles Clippers and All-Star guard James Harden have agreed to a new two-year, $81.5million contract, multiple media outlets reported Sunday.

Harden declined his $36.3million player option for next year in favour of a larger deal that lasts through the 2026-27 season.

The second year of the deal includes a player option and is partially guaranteed, according to ESPN.

The move comes on the eve of the NBA’s free agency negotiating period, which begins Monday night.

Transactions cannot be finalised until the beginning of the new league year on July 6.

BREAKING: 11-time NBA All-Star James Harden is declining his player option and intends to sign a new two-year, $81.5 million contract to return to the Los Angeles Clippers, sources tell ESPN. pic.twitter.com/qQMwkkMjMs

— Shams Charania (@ShamsCharania) June 29, 2025

Harden, who will turn 36 later this summer, has played the last two seasons for the Clippers while averaging 19.8 points, 5.5 rebounds and 8.6 assists over 151 games with Los Angeles.

The Clippers have won 101 games combined in the last two seasons but have been ousted from the first round of the playoffs in both years.

Norman Powell and Ivica Zubac had breakout seasons in 2024-25, but Kawhi Leonard’s health was again an issue, with the former Finals MVP playing just 37 games.

An 11-time All-Star, Harden is coming off a resurgent season in which he was selected to the All-NBA Third Team.

When free agency opens on Monday, the Clippers may seek another rotation player through the $14.1million non-tax mid-level.