The Houston Rockets and head coach Ime Udoka agreed on a long-term contract extension, sources told ESPN's Shams Charania.

The deal makes Udoka one of the NBA's highest-paid coaches, Charania reports.

Udoka has been at the helm for the last two seasons, guiding the Rockets to a 52-30 record in 2024-25 that secured the team's first playoff spot since 2019-20.

The former Boston Celtics head coach compiled a 93-71 record across two seasons in Houston and finished third in Coach of the Year voting at the completion of the 2024-25 campaign.

The Rockets recently denied the New York Knicks permission to speak with Udoka about their coaching vacancy following the dismissal of Tom Thibodeau.

Udoka's lucrative agreement marks the second major piece of business for the Rockets in June. The organization signed center Steven Adams to a three-year, $39-million contract last week.

Houston also needs to make a decision regarding veteran guard Fred VanVleet's $44.9-million team option ahead of the June 29 deadline.