The Houston Rockets and guard Jalen Green have agreed on a three-year contract extension worth $106 million, his agents told ESPN's Shams Charania and Bobby Marks.

The deal features a player option in the final season. Green's new contract will kick in beginning in 2025-26, during which he's slated to earn $33.5 million, sources told The Athletic's Kelly Iko.

Green started all 82 games for the Rockets last season, scoring 19.6 points per game - second on the team behind center Alperen Sengun - on 42.3/33.2/80.4 shooting splits. However, his scoring took a small step back from his sophomore campaign when he led the squad with 22.1 points per contest.

The 22-year-old is the first player to negotiate a player option into a rookie-scale extension worth at least $100 million, according to Charania. Such contracts usually don't feature player or team options and are for a minimum four-year term.

The Rockets also signed Sengun to a five-year, $185-million extension later Monday.