Houston Rockets guard Jalen Green has agreed to a three-year, $106 million rookie contract extension with the franchise, CAA's Aaron Mintz, Andrew Morrison and Shakira Wardally told ESPN.

The deal includes a player option in the third season, providing Green the ability to increase his earning potential down the road, sources said.

Green is the first NBA player ever to successfully negotiate a 2-plus-1 rookie extension on a nine-figure deal.

For Green, 22, the agreement is another trend-setting moment. He became the pioneer for the NBA's G League Ignite as the first signing in 2020, then went second overall to the Rockets in the 2021 draft.

The three-year deal provides Green with financial flexibility in the short term and the ability to earn more than $240 million total over the next five years -- more than the $224 million current maximum -- because of his extension eligibility as soon as October 2026 and the ability to opt out at the age of 25.

Green closed last season strong, significantly increasing his efficiency on jumpers and shots near the rim in March and April. During the Rockets' 11-game win streak in March, Green averaged 30.2 points on 50% shooting from the field and 45% from 3.

His 545 career 3-pointers are tied for the fifth-most by a player through his first three NBA seasons.