James, Cavs come to terms on three-year extension

CLEVELAND -- LeBron James agreed early Wednesday to a three-year contract extension worth about $60 million with the Cleveland Cavaliers, keeping the All-Star forward with the club through at least the 2009-10 season.

The contract includes an option that would allow James to extend the deal one season, the Cavaliers reported on their website. The contract, which James is yet to sign, will take effect after the 2006-07 season.

"I knew all along -- and I had always said -- that I wanted to stay here in Cleveland, so it's a terrific day for me and my family to actually make it official," James said in an interview on the team's website. "Now I can continue to concentrate on basketball and helping bring a championship to Cleveland."

James chose an extension that is for two years less than the maximum deal the Cavs could have offered under the league's collective bargaining agreement, a five-year package worth as much as $80 million.

"We did extensive research and with the way the CBA is set up, it makes the most business sense to sign this extension and then look at another new contract in four years," James said.

With James traveling on the West Coast, no formal news conference was planned.

It's a slam dunk, Cavs fans: LeBron will stay until 2010. (Getty Images)

Although the 21-year-old James announced Saturday that he had agreed to an extension with the Cavs, terms couldn't be announced until Wednesday, when the NBA's moratorium on free-agency ended.

The deal works out well for James and the Cavaliers, whose management made the negotiation process run smoothly, said the player's agent, Leon Rose.

"They really look at their relationship with LeBron as a partnership and understand that helping LeBron maximize his opportunities only helps them as well," Rose said.

The Cavs offered James the maximum deal, but understand why he decided that contract wasn't best for him, general manager Danny Ferry said.

"This allows LeBron to maximize his value while wearing a Cavaliers uniform. LeBron is an intelligent young man. He did his due diligence and is excited about continuing to play with the Cavaliers and from our perspective his presence is beyond measure," Ferry said.

The deal is a huge relief for a team that has risen into contention in James' three seasons and fans who were worried the 6-foot-8 superstar might leave Cleveland, which hasn't celebrated a championship since the 1964 Browns won the NFL crown.

James, who is from nearby Akron, has resurrected a franchise that has never reached the NBA Finals. With James hitting winning shots in the playoffs, the Cavaliers came within one victory last season of reaching the Eastern Conference finals.