REPORTS: The New Orleans Pelicans have signed backup point guard Jose Alvarado to a two-year contract extension worth $9 million.

This deal, which includes a player option for the second year, keeps the fan-favorite in New Orleans. Alvarado, who is currently under contract for just under $2 million for the upcoming season, will see a significant pay increase in the second year, with the option to enter free agency for the 2026-27 season.Last season, Alvarado averaged 7.1 points per game off the bench and had a three-point shooting percentage of 37.7%. He also ranked sixth in the voting for the Sixth Man of the Year award. In the upcoming season, he is expected to serve as the backup point guard behind Dejounte Murray, with CJ McCollum likely sharing some minutes at that position.Known for his crafty steals, Alvarado has become an essential player for the Pelicans. This contract is beneficial for the team as it retains a valuable reserve point guard at an appealing price while providing Alvarado with a substantial salary increase and future flexibility in his career.

In 171 games with the New Orleans Pelicans, Jose Alvarado has averaged 7.5 points, 2.7 assists, and 1.2 steals in 18.5 minutes per game.

A native of New York with Puerto Rican heritage, Alvarado has also represented Puerto Rico’s national team, including participation in the 2024 Paris Olympics.

This season, he will serve as one of the main backups for newly acquired point guard Dejounte Murray.

The Pelicans’ training camp is set to open in Nashville, Tennessee, on Tuesday, following a preseason media event in New Orleans on Monday.