According to the Cavaliers' official website, James's new deal will have the option for an additional year which would take him through the 2010/11 season.

There is also a clause in place that will give the Cavaliers and James the right to extend the new contract for four additional years, starting in the summer of 2009.

James, who is from nearby Akron, said: "This is a very special time for me and my family. I signed this extension for several reasons. It has been tremendous
being close to my family and friends and playing with my Cavalier team-mates. I'm extremely happy here and believe in my team-mates, the coaches, and our management staff.

"I appreciate the support and dedication the Cavaliers and Dan Gilbert have shown towards building a championship organisation and the loyalty they have shown with this contract.

"It has also been extremely gratifying to give back to my community and I look forward to continuing to do so on and off the basketball court."

The 21-year-old James is one of the most exciting talents in the sport and was named NBA Rookie of the Year in 2003/04 - becoming the first Cavalier and youngest player to ever receive the award.

The forward, who averaged 31.4 points and seven rebounds per game last season for the Cavaliers, is set to play for the United States at this year's FIBA World Championship.

Article courtesy of fiba.com