Durant, who is an unrestricted free agent, will have a player option on the second year, according to the report.
The 2017 NBA Finals MVP would be taking a pay cut of approximately $9 million from the max deal that is valued at $34 million per year. He declined his 2017-18 player option of $27.7 million to become a free agent with the intended purpose of allowing Golden State to retain the rights to Andre Iguodala and Shaun Livingston.
Both Iguodala and Livingston came to terms, but had that not been the case, Durant would have been eligible for a higher-paying deal. His expected annual salary of between $25 million-$26 million is a way of lessening the luxury-tax blow for owner Joe Lacob.
The Warriors came to terms with point guard Stephen Curry on a five-year, $201 million maximum salary deal on Saturday.
Durant left the Oklahoma City Thunder last summer to sign with the Warriors. The 28-year-old played a huge role this season in leading Golden State to its second NBA championship in three years over the Cleveland Cavaliers.
In this year's NBA Finals, Durant averaged 35.2 points, 8.4 rebounds and 5.4 assists as the Warriors wrapped up the series in five games.