Rudy Gay has agreed to a three-year, $40 million contract extension with the Sacramento Kings, according to sources.

The extension begins with the 2015-16 season, and includes a player option for the the 2017-18 season.

Gay has one year left on his current deal, which will pay him $19.3 million.

For the Kings, the re-signing of Gay is an important statement on the franchise's ability to get high-level players to decide to stay with the organization.