Nine-time NBA All-Star Damian Lillard agreed to a three-year, $42 million contract to return to the Portland Trail Blazers, sources told ESPN on Thursday.
Lillard’s deal includes a player option in 2027-28 and a no-trade clause.
Lillard joins the Los Angeles Lakers‘ LeBron James as the only NBA players with a true no-trade clause in their contracts. Bradley Beal had one before coming to a buyout agreement with the Phoenix Suns earlier this week.
Lillard and the Trail Blazers both deeply cared about a reunion in recent weeks — with multiple meetings among the Portland franchise icon, general manager Joe Cronin and head coach Chauncey Billups to bond together and move forward united on a new deal, sources said.
The Milwaukee Bucks waived Lillard, 35, earlier this month and stretched the remaining $113 million on his contract to sign free agent center Myles Turner.
Lillard now will have a 2025-26 set salary of $70 million between his Portland and Milwaukee deals, and a salary of $141 million over the next two years ahead of an opt-out in 2027. Blazers officials and Aaron Goodwin of Goodwin Sports Management are finalizing terms this week.
Lillard tore his left Achilles in late April in Game 4 of the Bucks’ first-round playoff series with the Indiana Pacers and underwent surgery in early May.
Lillard will use the 2025-26 season to rehabilitate his injury, but a return to the franchise and Portland, where his family and children reside were of the ultimate importance, per sources. He also had multiple midlevel exception and minimum offers from NBA contenders, per sources.
Portland traded Lillard to the Bucks for Jrue Holiday, Toumani Camara, and assets in 2023 and then sent Holiday to the Boston Celtics for Robert Williams III, Malcolm Brogdon and assets (one led to Deni Avdija).
Now, the Blazers have both Lillard and Holiday (reacquired in a trade with the Celtics this offseason), plus Avdija, Williams, Camara, a 2029 first-rounder and two Bucks pick swaps.
The Blazers will look to build on a 22-18 finish to last season, ranking in the top five in the NBA in defense and third in transition defense during that span, according to ESPN Research.
Lillard spent 11 seasons with the Trail Blazers, making seven All-Star appearances and seven All-NBA teams. He led Portland to the playoffs eight times, including a Western Conference finals appearance in 2018-19. He ranks first in team history in points (19,376) and 3-pointers (2,387), and second in assists (5,151).
Including the regular season and playoffs, Lillard has seven 55-point games with the Trail Blazers. No other player in the franchise’s history has any such games.