DATE IMPORTED:November 10, 2014Nov 9, 2014; Oklahoma City, OK, USA; Oklahoma City Thunder center Kendrick Perkins (5) fights for a loose ball against Sacramento Kings forward Rudy Gay (8) during the second quarter at Chesapeake Energy Arena.
DATE IMPORTED:November 10, 2014Nov 9, 2014; Oklahoma City, OK, USA; Oklahoma City Thunder center Kendrick Perkins (5) fights for a loose ball against Sacramento Kings forward Rudy Gay (8) during the second quarter at Chesapeake Energy Arena. REUTERS

The Sacramento Kings and soon-to-be free agent forward Rudy Gay have agreed to terms that will keep the combo-forward in the purple jersey for the next 3 years. The extension is worth $40 million with a player opt-out clause for the final year, which will possibly allow a then 31-year-old Gay to pursue a longer and bigger deal when the new Collective Bargaining Agreement (CBA) kicks in and the revenue for the new television deal gives team's more money to offer players.

Adrian Wojnarowski of Yahoo Sports was first to break the deal that essentially reduces the current annual salary of the starting small forward of the Kings. Sacramento has been showing signs of positive direction this season as it has started strong behind the efforts of promising big man DeMarcus Cousins and the steady play of Gay. The Kings are currently sitting at 8th place in the Western Conference standings at 6-4 despite close losses to the Memphis Grizzlies and the Dallas Mavericks.

The Kings and Gay's agent Alex Saratsis of Octagon ironed out the details of the deal over the past few days and finally agreeing to terms Saturday night. The Kings have expressed all summer long of their intention to bring back the former Memphis Grizzlies and Toronto Raptors talent and the deal is culmination of both sides indication to continue a partnership.

The much-maligned 28-year-old forward was heavily criticized for his voluminous and ineffective shooting during his Raptors days but his professional work ethic and improvement during his Kings stint has been encouraging. The small forward is currently producing 22 points per outing, a career high. Add to that 6.8 rebounds and 3.8 dimes per game, and the Kings are getting the value of the high salaried player who proved to be an effective small-ball power forward for much of this early season and during his stint with Team U.S.A. during the summer's FIBA World Cup of Basketball.

The flexibility of the new deal which would pay around 16 to 17 million annually for Gay will allow the Kings to add another meaningful player in the rotation to flank Cousins and Gay. Gay, for his part, will be able to weigh his options come 2017 when some analysts project the maximum cap room to shoot up to $90 million.