The 26-year-old guard, who has developed into a key piece for the Lakers, is currently in the second year of a four-year, $53 million contract but is poised to secure a significantly larger deal in the coming years.

“The way he’s played the last two-plus months, he’s clearly a high 20s, if not a 30+ million dollar per year player. I suspect the Lakers will make the formal offer of an extension and say, ‘Hey, this is the most we can offer. We’d love for you to sign this and remain a Laker for the foreseeable future.'” 

“I’d expect Austin to decline that and not sign that extension and then opt out after the 2025-26 season. He’s got a player option for 2026-27. So, I think in that 2026 summer, he will opt out.”

“He will test free agency, and then he will try to remain a Laker long-term, but it’s gonna come down to what type of contract they offer him. He’s a guy who should be making at least 27-28+ million, if not 30+ million moving forward.”

Reaves is having a strong season, averaging 19.2 points, 4.3 rebounds, and 6.1 assists per game while shooting 44.6% from the field and 36.0% from three-point range.

His ability to step up when other stars have been sidelined has been crucial for the Lakers, especially following the trade of Anthony Davis.

Even when LeBron James has missed games, Reaves has shouldered a heavier offensive load.

Now, with Luka Doncic in the fold, he has solidified himself as the Lakers’ clear third option, making him one of the best third options in the entire league—something only a handful of teams can claim.

Despite his importance to the team, the Lakers’ initial extension offer reportedly falls short of Reaves’ market value.

According to Jovan Buha of The Athletic, the Lakers are expected to offer Reaves a four-year deal worth around $88-$90 million, which averages out to $22-$23 million per season.

However, Buha believes Reaves should command closer to $27-$30 million annually based on his production and recent performance.

Reaves is earning $12.9 million this season and is set to make $13.9 million in 2025-26. In the final year of his deal, he has a $14.8 million player option for the 2026-27 season.

Given his performance, it is widely expected that he will decline the option in favor of a more lucrative long-term contract, whether from the Lakers or another team.

Buha also emphasized that Reaves is unlikely to give the Lakers a discount. Reaves has been a fan favorite in Los Angeles, and his journey from undrafted rookie to a key starter has been remarkable.

He played a crucial role in the Lakers’ 2023 NBA Cup championship run, and his ability to contribute in high-pressure moments has earned him a reputation as one of the best undrafted players in league history.

As the 2026 free agency period approaches, Reaves will have a major decision to make.

While the Lakers are expected to be strong contenders to retain him, other teams will likely make aggressive offers, making his future one of the most intriguing storylines to watch in the coming years.