Indiana free agent Rodney Stuckey has agreed in principle on a three-year, $21 million contract to re-sign with the Pacers, league sources told RealGM.

Stuckey’s deal will hold a player option on the third season, sources said.

For Stuckey, the free agency priority entailed re-signing with the Pacers or joining an NBA playoff threat elsewhere. Several NBA teams pursued Stuckey, including the Washington Wizards and Houston Rockets. Still, the 6-foot-5 guard emerged as the Pacers’ top option to retain days into free agency.

Stuckey flourished in Frank Vogel’s offensive system and provided stability as a starter or reserve last season, averaging 12.6 points on 39 percent tree-point shooting in 26.4 minutes per game. He also averaged 3.5 rebounds and 3.1 assists in his return to a ball-handling role on a playoff threat in the Eastern Conference, a team becoming more versatile this offseason. For Stuckey, returning to the Pacers as the sixth man was critical.

Stuckey’s agent, Paolo Zamorano, negotiated last season's veteran-minimum contract into a $7 million annual deal and was able to receive the player option that he sought for flexibility.

The Pacers will clear sufficient salary cap space for Stuckey through the trade of Roy Hibbert once the NBA free agency moratorium ends on Thursday.

Stuckey, 29, has averages of 13.3 points and 3.8 assists over his NBA career with the Pacers and Detroit Pistons. The 6-foot-5 guard was the Pistons’ 15th overall selection in the 2007 NBA draft out of Eastern Washington.