It is a move that ties Towns, 26, to the franchise until after the 2027 playoffs, as he still has two seasons remaining on his five-year, $158m deal he signed ahead of the 2019-20 season.
The Timberwolves centre – who called himself the greatest big-man shooter of all time after winning this past season's Three Point Contest during All-Star Weekend – is coming off his second career playoff appearance, and the first since 2018.
He averaged 24.6 points, along with 9.8 rebounds and 3.6 assists, shooting 41 per cent from three-point range on 4.9 attempts per game.
Partnered with the number one pick of the 2020 NBA Draft, Anthony Edwards, the Timberwolves believe they have the cornerstones of what could turn into the most successful era of Minnesota basketball since Kevin Garnett left for the Boston Celtics in 2007.
Tatum led the Celtics' third-quarter charge as they piled on 42-23 to open up the game after trailing by 12 points early in the period.
The Celtics small forward had 10 rebounds, three assists, one steal and two blocks to go with his 38 points, while Jaylen Brown added 17 points and nine rebounds.
Trae Young starred for the Hawks, who never gave in, scoring 30 points with four rebounds and 10 assists.
Bogdan Bogdanovic scored 26 points off the bench for the Hawks who reached last year's Conference Finals but are 26-30 this season.
Edwards shines as Timberwolves win
Former NBA Draft first pick Anthony Edwards dominated with 37 points to lead the Minnesota Timberwolves to a 129-120 win over the Indiana Pacers.
Edwards' haul included seven three-pointers along with five rebounds and four assists, overshadowing Karl-Anthony Towns (15 points, 13 rebounds, three assists).
The Timberwolves shot at 52.9 per cent from beyond the arc, making 18 triples for the game.
The Pacers, who were busy late in the trade period, were soundly beaten but new acquisition Tyrese Haliburton was impressive with 22 points, five rebounds and 16 assists. Oshae Brissett also had 22 points with 13 rebounds.
