Jordan Clarkson and the Utah Jazz are finalizing a three-year, $55 million contract renegotiation and extension, according to Shams Charania of The Athletic and Stadium. This deal includes next season and then tacks on two more years through 2025-26.

Clarkson previously decided to exercise his $14.26 million player option to avoid free agency. But now he's going to get a raise for 2023-24 and then those two additional years to stay with the Jazz, who will likely use cap space to give him that extra money for next season:

The 31-year-old guard has spent the last four seasons in Utah and just had the best year of his career in 2022-23. Clarkson averaged a career-high 20.8 points and 4.4 assists in 32.6 minutes per game. Typically a reserve and the 2020-21 Sixth Man of the Year, he started all 61 games he appeared in this past season.

The Jazz were one of the NBA's biggest surprises last season, with Clarkson helping lead the charge along with All-Star Lauri Markkanen and rookie center Walker Kessler. Utah's season took a downturn once the team got involved with the Russell Westbrook trade and the front office started focusing on draft positioning, but this was a group that had a good amount of success when actually trying to win.

The Jazz have been busy this offseason, making three selections in the first round of the 2023 NBA Draft (Taylor Hendricks, Keyonte George, Brice Sensabaugh) and also trading for John Collins while giving up almost nothing. Now, there's this Jordan Clarkson contract extension.

Utah has a ton of assets at its disposal and could make noise in the Western Conference in 2023-24. The Jazz are also reportedly interested in a Damian Lillard trade, though that's a major long shot.