The Charlotte Bobcats re-signed forward Gerald Wallace on Tuesday to a three-year contract.

Wallace averaged 11.1 points and 5.5 rebounds last season while starting 68 of the 70 games he played. His average of 1.6 steals a game ranked ninth in the NBA.

Wallace was drafted by Sacramento with the 25th overall pick in 2001 and spent three seasons with the Kings. The Bobcats selected him in the expansion draft last season.

Gerald Wallace agreed to a three-year deal that will prevent him from becoming an unrestricted free agent next summer, the Observer has learned. A source close to Wallace said he can opt out of the contract after two seasons.

Financial terms were not available, but Wallace previously turned down a three-year deal worth about $16 million.

This compromise avoids a potentially touchy situation. Had Wallace signed the one-year qualifying offer, he'd become an unrestricted free agent in the summer of '06 but would have little financial security. It was also a gamble for the Bobcats: Under NBA rules, Wallace could have vetoed any trade, leaving the team in danger of losing him without compensation.

Wallace and his agent, Rob Pelinka, met with Bobcats coach-general manager Bernie Bickerstaff Thursday. They couldn't agree then, and Bickerstaff said afterward he expected Wallace to play for the qualifying offer, worth about $2 million.

Bobcats management and Gerald Wallace's agent couldn't come to an agreement Thursday, so coach-general manager Bernie Bickerstaff expects Wallace to play for the one-year qualifying offer. That offer -- for about $2 million this season -- would make Wallace an unrestricted free agent in the summer of 2006.

Wallace turned down what one source described as a three-year guarantee worth about $16 million.

"We're at a stalemate. And as far as value, we think we're fair," Bickerstaff said late Thursday.

"I would assume he'll play for the qualifying offer. Our message was very consistent: We like Gerald, we want him on our basketball team, and if he reaches the status they say he is, we'll pay him well."

Wallace's agent, Rob Pelinka, confirmed to the Observer that the Bobcats didn't improve on their previous offer during Thursday's meeting. He said they're disappointed, and now Wallace must consider the alternatives: Playing for the one-year qualifier or shopping his services to a team willing to sign Wallace to an offer sheet.

Charlotte Bobcats forward Sean May had arthroscopic surgery on his right knee Tuesday and will not be ready to play when training camp begins next month.

May, the former North Carolina star selected 13th overall in the NBA draft, is expected to be ready in time for Charlotte's Nov. 2 season opener.

"We are fortunate that this was a minor injury and caught early," Bobcats coach Bernie Bickerstaff said. "Sean has a great work ethic and we know he will work extremely hard to be back to 100% when the regular season begins."

May played for the Bobcats' summer-league team and was the most valuable player of the Rocky Mountain Revue league, averaging 16.5 points and 9.2 rebounds over six games.

He had the surgery in Santa Monica, Calif., to remove damaged cartilage in his knee.

"I am committed to doing whatever I have to do to be back on the court as quickly as possible because I am so excited to start my NBA career and to help the Charlotte Bobcats grow," May said. "I feel I am in the best shape of my life and this will not keep me down."