The Portland Trail Blazers exercised their fourth-year option on the contract of guard Damian Lillard.

In two seasons, Lillard has averaged 19.9 points (42.7% FG, 38.1% 3-PT, 85.9% FT), 3.3 rebounds, 6.0 assists, 0.84 steals and 37.2 minutes per game. Only four players in NBA history have more points (3,257) and assists (988) in their first two seasons (O. Robertson, T. Archibald, A Iverson, L. James). Lillard’s 403 3-pointers through his first two seasons are the most in league history. He’s tied for eighth on Portland’s all-time list for 3-pointers (403). Lillard set a franchise record last season for the most 3-pointers made in a single season (218).

The Philadelphia 76ers have waived Pierre Jackson.

Mark Deeks writes that Jackson will receive a guaranteed $400,00 from the 76ers for this season while he rehabs from an Achilles tear that occured during Summer League.

Free agent forward Alonzo Gee has reached agreement on a deal with the Denver Nuggets, a source with knowledge told RealGM.

After deciding on Monday to join the Nuggets, Gee will report to Denver training camp Tuesday.

As one of the best players on the available market, the 6-foot-6 forward brings active defense and athleticism on the wing for the Nuggets.

Gee, 27, has trained vigorously on his overall game and basketball shape in the offseason, when he was traded three separate times and ultimately released by the Sacramento Kings to open a roster spot.

Over five NBA seasons playing for the Cleveland Cavaliers and Washington Wizards, Gee established himself as a contributing role player, averaging 7.9 points and 3.6 rebounds in his career.

Rajon Rondo will begin the 14-15 season coming back from a left hand injury, but it will be an important year with free agency looming in July. A veteran of eight seasons, Rondo has assumed a leadership role with the Boston Celtics since the departure of Ray Allen, Paul Pierce and Kevin Garnett. He has also developed a good relationship with Brad Stevens, who replaced Doc Rivers before the 2013-14 season.

There have been rumors for more than a year that Rondo’s days with the Celtics are numbered, but on Monday he insisted that he wants to remain with the Celtics over the long-term. He even joked that he hopes to put an end to persistent trade rumors by negotiating a no-trade clause into his next contract, looking over at Danny Ainge with a smirk.

“Yes,” Rondo replied with conviction when asked if he wants to re-sign with the Celtics. “The fans and the people here are the ones that make me want to stay. I can’t say enough about Danny and Wyc [Grousbeck], but when I’m out there on the street the whole community embraces me.”

Rondo could command a max contract as an outright free agent next summer, something he admitted during the team’s annual media day that he believes he deserves. He was the starting point guard for a championship team as a second-year player back in 2008, but he's aware that Ainge is currently working on a rebuild.

“I’m pretty smart, I know this isn’t a championship season,” Rondo said when asked about the team’s short-term chances.

Free agent swingman D.J. Stephens has reached an agreement on a training camp deal with the New Orleans Pelicans, leagues sources told RealGM.

A freak athlete who recorded a 46-inch vertical as an NBA draft prospect in 2013, Stephens signed a 10-day contract with the Milwaukee Bucks last season. In three NBA games, Stephens scored seven points and grabbed five rebounds.

Stephens played four seasons at the University of Memphis.

Markieff and Marcus Morris have agreed to contract extensions with the Phoenix Suns, according to sources.

Markieff's deal is worth $32 million over four seasons, while Marcus will earn $20 million over four, according to Paul Coro.

Chris Johnson was claimed by the Philadelphia 76ers off free agency waivers, according to sources.

Johnson was recently waived by the Boston Celtics.

The Denver Nuggets are actively pursuing free agent forward Alonzo Gee, sources with knowledge told RealGM.

Despite dealing with the adversity of three offseason trades and his release from the Sacramento Kings on Thursday, Gee has worked out diligently on his overall game, including improving his jump shot, daily training sessions and getting into the best basketball shape of his career. 

Denver has expressed interest in Gee with a belief that his abilities fit their system, a five-year NBA veteran who would benefit the Nuggets with athleticism and defense in camp. Gee cleared NBA free agency waivers on Saturday.

In almost four seasons with the Cleveland Cavaliers, Gee, 27, averaged eight points and four rebounds -- with consecutive years of scoring over 10 points per game.

As an undrafted player in 2009, Gee signed contracts with the Minnesota Timberwolves and Washington Wizards before securing a roster spot with Washington.

Jason Kapono has agreed to a training camp deal with the Golden State Warriors, according to sources.

Kapono last played in the 2011-12 season for the Los Angeles Lakers.

After being released Friday, Christian Watford has agreed on a new training camp contract to re-sign with the Boston Celtics on Monday, league sources told RealGM.

Watford had signed a one-year contract for training camp with the Celtics, and he'll re-sign for the same terms once he clears waivers.

Watford, a sharpshooting forward, went undrafted in 2013 after playing at Indiana.