Veteran guard James Harden has agreed to a new three-year, $97 million contract with the Cleveland Cavaliers, according to a report from ESPN NBA insider Shams Charania on Thursday.
The new deal includes a player option and trade kicker.
Harden declined his 2026-27 player option with the Cavaliers in June, entering free agency. However, the 11-time NBA All-Star always intended to re-sign with Cleveland ahead of his 18th professional season.
The structure of Harden’s new deal helped the Cavaliers land Peyton Watson in a sign-and-trade deal on Wednesday. Cleveland’s projected starting lineup now features Harden, Watson, Donovan Mitchell, Evan Mobley and Jarrett Allen.
Harden landed in Cleveland as part of a blockbuster deal before last year’s trade deadline. Through 26 regular-season games with the Cavaliers, he averaged 20.5 points, 7.7 assists and 4.8 rebounds per game. He helped the Cavaliers advance to the Eastern Conference Finals, where they ultimately fell to the New York Knicks in a series sweep.
The Cavaliers will open up their 2026-27 NBA regular-season schedule with a matchup against the Philadelphia 76ers on Oct. 22.