The NBA and players' union have announced an extension from Thursday's deadline to give notice of plans to opt out of the collective bargaining agreement (CBA).

The NBA and National Basketball Players Association (NBPA) put out a joint statement on Wednesday on the agreement that moves the deadline to February 8, one day before this season's trade deadline.

The statement clarified that the extension is part of their ongoing efforts to reach a new agreement, but if either party exercises the opt-out, the CBA's term will end on June 30 2023.

That creates a potential work stoppage after the 2022-23 NBA season, with the playoffs due to take place in April and May, followed by the Finals in June.

ESPN reported that the NBA is eager to implement an upper spending limit to replace the luxury tax, to contain the payrolls of large-market contenders such as the Golden State Warriors and the Brooklyn Nets.