Gordon's agent, Calvin Andrews of Klutch Sports, told ESPN and The Athletic that the agreement is worth $92 million -- $88 million in base salary and $4 million in incentives -- over the four years. The deal also includes a player option for the fourth year in 2025-26.
Gordon, who is the 11th player to sign a veteran extension this off-season, was traded to the Nuggets in March. Denver sent shooting guard Gary Harris, rookie guard R.J. Hampton and a protected 2025 first-round draft pick to the Orlando Magic in exchange for Gordon.
The 25-year-old Gordon averaged 12.4 points, 5.7 rebounds and 3.2 assists with the Magic and Nuggets last season. In the playoffs, he had averages of 11.1 points and 5.4 rebounds as the Nuggets reached the second round before the Phoenix Suns swept them.
The Magic selected Gordon with the No. 4 overall pick in the 2014 NBA Draft out of the University of Arizona. He spent parts of his first seven seasons in Orlando before being dealt to the Nuggets.
In 453 career games (366 starts), Gordon has averaged 12.7 points, 6.3 rebounds and 2.5 assists.