Nate McMillan has agreed to a contract extension with the Indiana Pacers.

McMillan had one season remaining on his contract. McMillan confirmed that the extension is for one additional season.

McMillan will have reached the playoffs in each of his four seasons as Pacers coach.

ESPN's Zach Lowe and Jeff Van Gundy speculated about the future of McMillan as head coach of the Pacers last week. Lowe said the Pacers possibly moving on from McMillan this offseason has been "the hottest rumor all season."