Nine-time NBA All-Star Damian Lillard is finalizing a three-year, $42 million contract to return to the Portland Trail Blazers, sources told ESPN on Thursday.

Lillard’s deal is expected to include a player option in 2027-28 and a no-trade clause.

Lillard and the Trail Blazers both deeply cared about the comeback in recent weeks — with multiple meetings among the Portland franchise icon, general manager Joe Cronin and head coach Chauncey Billups to bond together and move forward united on a new deal, sources said.

The Milwaukee Bucks waived Lillard, 35, earlier this month and stretched the remaining $113 million on his contract in order to sign free agent center Myles Turner.

Lillard now will have a 2025-26 set salary of $70 million between his Portland and Milwaukee deals, and a salary of $141 million over the next two years ahead of an opt-out in 2027. Blazers officials and Aaron Goodwin of Goodwin Sports Management are finalizing terms this week.

Lillard tore his Achilles in late April in Game 4 of the Bucks’ first-round playoff series with the Indiana Pacers and underwent surgery in early May.

Lillard will use the 2025-26 season to rehabilitate his injury, but a return to the franchise and Portland where his family and children reside were of the ultimate importance, per sources. He also had multiple mid-level exception and minimum offers from NBA contenders, per sources.

Lillard spent 11 seasons with the Trail Blazers, making seven All-Star appearances and seven All-NBA teams. He led Portland to the playoffs eight times, including a Western Conference finals appearance in 2018-19. He ranks first in team history in points (19,376) and 3-pointers (2,387) and second in assists (6,069).

Including the regular season and playoffs, Lillard has seven 55-point games with the Trail Blazers. No other player in the franchise’s history has any such games.