The Houston Rockets reached a decision on guard Fred VanVleet. With the team considering an option, both sides instead decided to agree on a new, two-year, $50 million contract. The move ensures VanVleet will remain with the Rockets through the 2026-27 NBA season.

VanVleet’s new deal gives the Rockets flexibility over the next year and gives him the opportunity to enter the 2026 free agency market where there will be more salary cap space for teams. Both sides believe in a partnership for years to come beyond the two years, sources said.

By declining VanVleet's $44.9 million team option and re-signing him to a longer deal, the Rockets save on next season's payroll, which now includes Kevin Durant's hefty salary.