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.

Fred VanVleet signed a two-year, $50 million extension with the Houston Rockets on Tuesday after the team declined his $44.9 million team option for the 2025-26 season.