James' agent, Rich Paul of Klutch Sports Group, told ESPN and The Athletic that James reached a two-year, $85 million extension with the Lakers. James' deal with Los Angeles runs through the 2022-23 season.
James, who turns 36 at the end of this month, averaged 25.3 points and led the league in assists with 10.2 per game last season. He will be 39 when the contract ends, with 20 NBA seasons under his belt.
James is now scheduled to make $39.2 million in the 2020-21 campaign, according to ESPN. He is set to earn about $41.2 million in 2021-22 and about $44.5 million in 2022-23. His career earnings from his NBA contracts will total more than $435 million by the conclusion of the extension.
The 16-time All-Star selection and four-time champion was named the 2020 NBA Finals MVP after guiding the Lakers past the Miami Heat in six games inside the league bubble near Orlando, Fla. James became the first player in NBA history to win that award with three different teams. He also was Finals MVP with the Heat in 2012-13 and the Cleveland Cavaliers in 2016.
James -- currently No. 3 on the league's all-time scoring list with 34,241 points -- trails Kareem Abdul-Jabbar by 4,146 points for the top spot. James also ranks eighth on the career assists list, No. 13 in steals, No. 15 in 3-pointers made and No. 48 in rebounds.