The Spurs did not release contract terms, but the San Antonio Express-News reported that it is a three-year contract. ESPN reported the new deal is worth $48 million and contains a partial guarantee in the final year for the native of Spain.
Gasol declined a player option in June with the purpose of signing a longer deal with San Antonio and also giving the team more salary cap room.
Gasol signed with the Spurs last summer and averaged 12.4 points, 7.8 rebounds, 2.3 assists and 1.09 blocks in 25.4 minutes while appearing in 64 games. The 37-year-old forward also shot 50.2 percent from the field, including a career-best 53.8 percent on 3-pointers.
The 16-year veteran is a four-time All-NBA selection, who won two titles with the Los Angeles Lakers. A six-time All-Star, Gasol was an All-NBA second team selection in 2010-11 and 2014-15 and also earned All-NBA Third Team honors in 2008-09 and 2009-10.
In 1,119 career games with the Memphis Grizzlies, Lakers, Chicago Bulls and Spurs, Gasol has averaged 17.9 points, 9.4 rebounds while shooting 51 percent. He also has averaged 15.8 points and 9.3 rebounds in 131 career postseason games.