Indiana Pacers coach Nate McMillan has agreed on a contract extension, league sources told ESPN.

McMillan, who had one year left on his contract, finalized the deal in recent days, sources said.

Well-respected among his coaching peers for his personal character and hard-playing teams, McMillan has the Pacers positioned as the fifth seed in the Eastern Conference playoff chase. He has been credited with maximizing the organization's roster despite several stretches of significant injuries in recent years.

McMillan will have reached the playoffs in each of his four seasons as Pacers coach. He's likely to be without All-Star forward Domantas Sabonis, who left the NBA's restart in Orlando, Florida, to rehab a plantar fasciitis injury in his left foot. All-Star guard Victor Oladipo is still working his way back to full form from a torn quad tendon in his right knee.

In 16 seasons with the Seattle Sonics, Portland Trail Blazers and Pacers, McMillan is 665-590 (.530) -- and 20-32 in nine trips to the playoffs. He's one of 26 coaches to win 600 NBA games.