Nowitzki took a major pay cut to aid the Mavericks in free agency as he was paid $22.7 million last season. The 16-year Mavericks power forward had said prior to the arrival of free agency that he would not consider any other team and he and owner Mark Cuban would eventually come to terms on a deal. Nowitzki will be 38 years old at the end of his contract.
Dallas has been active in free agency this month, agreeing to terms with free agents Chandler Parsons and Richard Jefferson, and trading for center Tyson Chandler, guard Raymond Felton and center Greg Smith.
ESPN.com first announced Nowitzki's contract terms after the Mavericks announced the re-signing. The Mavericks' all-time leading scorer is a 12-time All-Star who led the franchise to their lone championship in 2011.