Parker will earn $12.5 million in the 2014-15 season, and his extension will start in the 2015-16 season. He will make $13.4 million, $14.4 million and $15.4 million during the extension, a league source said.
Parker, 32, played a pivotal role in the Spurs' fifth championship this season. He averaged 16.7 points a game for the Spurs, with whom he's played his 13-year NBA career. Parker has been an All-Star six times.
Parker's representatives with CAA finalized a deal with Spurs president R.C. Buford over the past few days, sources said.
San Antonio has reached extensions to bring back several of Parker's teammates this summer, including Boris Diaw, Patty Mills and Matt Bonner.
NBA Finals MVP Kawhi Leonard is eligible for his rookie extension before the start of the season, and he could be in line for a deal in the neighborhood of a maximum contract. Leonard could become a restricted free agent in the summer of 2015.
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