Cleveland Cavaliers All-Star guard Donovan Mitchell has agreed on a three-year, $150.3 million maximum contract extension that includes a player option for the 2027-28 season, sources told ESPN.

The deal delivers the Cavaliers the stability of having their franchise player under contract beyond next season. For Mitchell, it delivers a guaranteed four years, $185 million total now and a chance to reach the league's 10-year service criteria that would allow him to pursue a five-year extension worth more than $380 million in 2027.

Mitchell and his agent, Austin Brown -- co-head of CAA Basketball -- met with Cavaliers president of basketball operations Koby Altman on Saturday in Los Angeles and reached an agreement on the extension, sources said. A significant part of Mitchell's belief in committing on a new deal comes with his and his representative's confidence in the organization to keep building the Cavaliers into a championship contender and an alignment on a partnership of how they'll play a part in doing it together, sources said.

Since acquiring Mitchell from the Utah Jazz at the trade deadline two years ago, the Cavaliers have made consecutive playoff appearances -- including advancing to the Eastern Conference semifinals last season.

Mitchell had 89 points in Games 6 and 7 of an opening-round playoff series victory over the Orlando Magic, second most in NBA postseason history for Games 6 and 7, according to ESPN Stats & Information research.

Mitchell, 27, has been an All-Star in five straight seasons and averaged 26.6 points in the 2023-24 season -- joining only LeBron James in franchise history to do so in multiple seasons, according to ESPN Stats & Information.

Mitchell is the first guard to average a minimum of 20 points in each of his first seven NBA seasons since Allen Iverson. He also averaged career highs in assists (6.1) and steals (1.8) a year ago -- ranking third in steals per game and sixth in deflections league-wide.