Kyle Lowry will remain with the Toronto Raptors for another two years after signing a one-year extension on Tuesday.

The reigning NBA champions confirmed the All-Star guard had agreed a new deal and, according to Lowry's agent Mark Bartelstein, the extension is for a further year and worth $31million.

Lowry had one year left on his old contract and will earn $33.3m this season, with the fresh extension keeping him off the free agent market next summer. 

“Kyle has been at the heart of every successful run our franchise has achieved the past seven seasons,” Raptors president Masai Ujiri said. “He is a competitor, a winner at every level and the engine that our players and city feed off from.”

Lowry, 33, added he was proud of the success he had experienced in Toronto so far.

"I'm very proud of what we have achieved with the Raptors, and I'm happy to be able to continue to call Toronto my home,” Lowry said.

"Bringing a championship to the city of Toronto and the country of Canada has been one the best things I've done so far in my career, and I'll push for that goal every single year I play this game.”

Since Lowry joined the Raptors in 2012, he has been part of five All-Star teams. He is entering his 15th season in the league and eighth with Toronto, which makes him the longest-tenured player on the roster.

During the Raptors' postseason run in the last campaign, Lowry averaged 15.0 points per game with 6.6 assists and 4.9 rebounds in 37.5 minutes of play.