All-Star guard Tyrese Haliburton and the Indiana Pacers have agreed on a five-year, designated maximum contract extension that could be worth up to $260 million, his agents, Dave Spahn and Aaron Mintz of CAA Sports, told ESPN's Adrian Wojnarowski on Friday night.

The deal is the largest in Pacers history and also the franchise's second deal ever to exceed $100 million.

Haliburton has been one of the home run selections from the 2020 NBA draft, averaging 16.2 points and 8 assists per game while shooting 48% from the field and 41% from 3 in his first four seasons.

He broke out as a first-time All-Star last season for Indiana, becoming the first player in NBA history to average 20 points and 10 assists while shooting 40% from 3-point range in a season, according to ESPN Stats & Information research (20.7 points, 10.4 assists, 40.0% 3-point).

The Pacers had a 118.8 offensive rating this season with Haliburton on the court, which would be a top-five offense in the league.

That made his contract extension a lock for Indiana, which has begun rebuilding its roster in recent years with Haliburton as one of the franchise pillars.

After being selected No. 12 overall by the Sacramento Kings, Haliburton was traded in February 2022 to Indiana in a deal centered around big man Domantas Sabonis. It's a move that has worked well for both franchises considering the Kings snapped a 16-year playoff drought in 2023 and the Pacers acquired a young point guard that can be the foundation of their team for years to come.

ESPN's Jamal Collier contributed to this report.