Kyle Lowry has agreed a one-year, $31million contract extension with the Toronto Raptors. 

The All-Star guard's agent, Mark Bartelstein, revealed that an extra 12 months has been added to a deal which still has one year left and is worth $33.3million.

Lowry's extension will keep him off the free agent market next year.

Raptors president Masai Ujiri, general manager Bobby Webster and Lowry's agents at Priority Sports have been trying to work out an extension for months. 

Bartelstein said the way Toronto handled the situation and the importance the organisation placed on Lowry made a huge impact.

"We are so appreciative of how Masai and Bobby handled every aspect of this negotiation," Bartelstein told ESPN.

"Once again, they displayed how they look after their players in a first-class manner, especially someone like Kyle who they recognise has such a legacy with the franchise."

Lowry, 34, has said that he wants to finish his career with Toronto and that he was not looking forward to hitting the free agency market.

Now that the Raptors are coming off their NBA title-winning season, the team is eager to build up its roster with Lowry as a key centerpiece.

Lowry becomes the first player older than 33 to get an extension that includes a first-year salary-cap hit north of $30 million. However, he is still eligible to be traded this upcoming season.

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, Lowry averaged 15.0 points per game with 6.6 assists and 4.9 rebounds in 37.5 minutes of play.