Free agent point guard Fred VanVleet has agreed on a three-year, $130 million contract with the Houston Rockets, Klutch Sports CEO Rich Paul and agent Erika Ruiz told ESPN's Adrian Wojnarowski on Friday.

The agreement officially ends VanVleet's run in Toronto, where he spent all seven of his NBA seasons and was an All-Star in 2022. Later Friday, Toronto found a replacement, agreeing to a two-year, $26 million with free agent Dennis Schroder.

Houston secured VanVleet, 29, by handing out the first max contract of free agency, a $130 million deal that is the largest for any undrafted player in NBA history. VanVleet famously uses the phrase "bet on yourself" to describe his career trajectory, and did so again Friday night amid his move to a new team.

Again? https://t.co/Py2RbwYn1h

— Fred VanVleet (@FredVanVleet) July 1, 2023

He brings a needed veteran presence to a Houston team that, according to Elias Sports Bureau, was the youngest in the NBA when weighing by playing time in 2022-23.

VanVleet turned down a $22.8 million player option with the Raptors for next season after averaging 19.3 points, 7.2 assists and 1.8 steals, continuing a strong run of play since he became a full-time starter in 2019-20.

It was his third straight season averaging at least 19 points and his fourth straight averaging six assists.

A volume 3-point shooter at the point guard position, VanVleet is an elite floor-spacer who can playmake and provide strong defense at the point of attack. He ranked third in the NBA in steals last season and first in deflections per game, according to ESPN Stats & Information research.

VanVleet helped the Raptors win a championship in 2019 with his hot shooting off the bench before taking over as the franchise's lead guard when Kyle Lowry departed two seasons ago. In his seven seasons in Toronto, he ranks third in total assists and fourth in total steals in franchise history.

VanVleet was undrafted out of Wichita State; he became just the fifth undrafted player to make an All-Star team two seasons ago. He signed a four-year, $85 million deal with the Raptors in 2020.

In Houston, he'll join a team under first-year coach Ime Udoka. The Rockets have finished with 14, 20 and 21 wins in the past three seasons since James Harden was traded to Brooklyn.