Dallas Mavericks All-Star guard Kyrie Irving is declining his $43 million player option and intends to sign a three-year, $119 million contract with the franchise, sources told ESPN on Tuesday.

Mavericks officials and Irving’s agent, Shetellia Riley Irving, negotiated the new deal that keeps Irving out of free agency and in Dallas long term. The new deal includes a player option in the 2027-28 season, sources said.

Irving told ESPN on Tuesday night that his decision to stay with the Mavericks long term was based on a commitment level from both sides, wanting to build a legacy in Dallas, and believing in the franchise’s ability to win a championship when he returns healthy from a torn ACL.

Throughout the conversations surrounding his player option and a new extension, both sides made clear their commitment to each other, and the Mavericks put a premium on Irving’s leadership and ability to team with All-Star Anthony Davis and soon-to-be No. 1 pick Cooper Flagg under the guidance of coach Jason Kidd and general manager Nico Harrison.

A leader and cornerstone of the Mavericks alongside Davis, Irving averaged 24.7 points, 4.8 rebounds and 4.6 assists last season before sustaining a season-ending ACL tear in his left knee in March.

Rival executives believed Irving, a nine-time All-Star, was in line for a major payday — between $50 million and $60 million annually — before the injury.

Irving, 33, will sit out the start of the 2025-26 season but is hopeful to return as soon as January, sources told ESPN.

The Mavs are expected to open up the $5.7 million taxpayer midlevel exception by signing Irving to this deal, sources said. Potential targets for that salary slot would have included Dennis Schroder, D’Angelo Russell, Chris Paul and Malcolm Brogdon, sources said.

Earlier this week, Dallas officials and agents for Daniel Gafford negotiated a three-year contract extension for the Mavs center worth up to nearly $60 million, sources said.

Irving’s importance to the Mavs only increased with the shocking blockbuster trade of five-time All-NBA point guard Luka Doncic to the Los Angeles Lakers in February, only months removed from Dallas’ run to the NBA Finals.

Irving averaged 28.1 points and 4.1 assists in 39.3 minutes in the 10 games he played between the Doncic deal and when he was injured. He also provided calm leadership in the locker room amid the chaos of the fan backlash from the trade, which brought Davis, Max Christie and a 2029 first-round pick to Dallas.

Irving has thrived in Dallas since arriving via a 2023 deadline deal with the Nets, which ended a tumultuous 3½-year tenure in Brooklyn.

During his run with the Mavs, Irving has averaged 25.5 points, 4.9 rebounds and 5.1 assists and has been revered by teammates and people throughout the organization for his professionalism and leadership.

Dallas pounced on the opportunity to acquire Irving for a trade package considered below market value for a star of his stature — sending Dorian Finney-Smith, Spencer Dinwiddie, a 2029 first-round pick and a pair of second-rounders to Brooklyn. The Mavs, who at the time were in desperate need of a co-star for Doncic in the wake of Jalen Brunson’s free agency departure, were confident they would create a comfortable environment for Irving due to his longstanding relationships with former Nike executive Harrison, Kidd and assistant coach God Shammgod.

ESPN’s Tim MacMahon contributed to this report.