Kawhi Leonard has agreed to a two-year, $115 million contract extension with the Toronto Raptors, locking in a three-year, $165 million run in Toronto that includes his current 2026-27 salary, ESPN reports, citing a source.

The two-time Finals MVP took less money than he could have gotten — he was eligible for a two-year, $126 million maximum extension — to secure the deal, which also includes a player option for the 2028-29 season, CBS Sports notes.

A return years in the making

The Raptors and Los Angeles Clippers agreed to a trade on June 30 sending Leonard back to Toronto in exchange for Brandon Ingram, Gradey Dick, two unprotected first-round picks, a first-round pick swap and two second-round picks. The two sides have negotiated steadily on Leonard's long-term future with the franchise since July, with the 34-year-old expected to finish his career where he won his second championship.

EXPECTING TO FINISH HIS CAREER IN TORONTO

Leonard, who led the Raptors to their only NBA title in 2019 before leaving for the Clippers as a free agent that summer, becomes the centerpiece of a Toronto roster trying to compete in a loaded Eastern Conference. Yahoo Sports reports the extension gives the Raptors financial flexibility to build around him over the next several seasons rather than facing a pending free-agency cliff.

The extension is a calculated bet for a franchise still chasing its next real contending window: Toronto is paying a 34-year-old with a lengthy recent injury history to be the centerpiece rather than searching for a replacement now. Team officials have described Leonard as both an on-court cornerstone and a mentor for Toronto's younger core heading into training camp.

Toronto opens its regular season next month looking to build on a roster reshaped by the June trade and now anchored by Leonard's new long-term commitment.