Kevin Durant is officially staying in Houston for the long run, as the Rockets and the 15-time all-star have reached agreement on a two-year, $90 million contract extension, according to ESPN’s Shams Charania.

The deal comes with a player option for the 2027-28 season. Durant’s new deal begins after the 2025-26 season in which he will earn $54.7 million under his existing contract. Combined, the three years will total roughly $144.7 million.

The extension is well below the two-year, $118 + million max extension he was eligible for, giving the Rockets needed cap flexibility. At age 37, with one more full season before the extension kicks in, the short-term structure lets both Durant and Houston assess the fit without locking up a long-term mega deal. By signing now, Houston secures Durant during his expected remaining peak years, helping solidify their championship window while also managing future payroll.

ANALYSIS: What this means for Durant is, the extension signals his intention to help build something meaningful in Houston rather than chase a max elsewhere. Sources say the deal aligns with his goal of finishing his career with the Rockets, with the goal of contending for a championship every single year Durant is with the franchise.

For the Rockets, adding Durant alongside rising stars like Alperen Sengun and Amen Thompson for the long haul elevates the franchise into serious contender status in the Western Conference. The cap savings from not doing the max allow for potential supporting-piece moves.

Durant has shown his commitment and that he’s bought into Houston’s vision and the deal preserves a clear championship window for the next 2-3 seasons. 

Rockets retain financial flexibility and avoid long-term risk often associated with aging superstars, and this deal might mark as the final major contract of Durant’s career, potentially anchoring his legacy in Houston rather than elsewhere.