Milwaukee Bucks star Jrue Holiday has signed a lucrative four-year contract extension worth up to $160million with the NBA franchise.

The Bucks confirmed the deal on Sunday, with All-Star Holiday declining his player option for the 2021-22 season as part of the agreement.

Holiday's agent Jason Glushon told ESPN that the deal includes a player option for the fourth year in 2024-25 as the Bucks – chasing their first championship since 1971 – solidify their core of two-time reigning MVP Giannis Antetokounmpo, Khris Middleton and the former.

The Bucks acquired guard Holiday from the New Orleans Pelicans via a four-team trade in November.

"I'm a Buck for life," Holiday said in a video via Milwaukee's Twitter account. "Just know that I'm glad to be a part of Bucks Nation. Let's do some big things, man. I'm really excited."

Holiday is averaging 17.0 points, 5.4 assists, 4.6 rebounds and 1.82 steals (second in the NBA) in 31.7 minutes per game this season.

In Holiday's 35 starts, the Bucks have tallied a 25-10 record. He is shooting a career-high 50.9 per cent from the field to go with 39.0 per cent from three-point range.

Holiday is one of four players in the NBA (Jimmy Butler, Nikola Jokic, Fred VanVleet) to be averaging at least 16.0 points, 5.0 assists, 4.0 rebounds and 1.5 steals per game in 2020-21.

"We are grateful for the time we've been able to spend learning about the Bucks organisation, our team and the greater Milwaukee community," said Jrue and Lauren Holiday.

"We appreciate how Jon [Horst], Coach Bud [Mike Budenholzer] and the entire staff, along with our team-mates and fans, have supported us since the trade to Milwaukee. We have a special group that wants to put in the work and compete for a championship every year.
 
"We look forward to working closely with our fans and the community, as well as continue to provide more opportunities and resources with our JLH Fund throughout Milwaukee. We're incredibly blessed to stay here, and we believe Milwaukee will be home for our family for many years to come."

Holiday holds career averages of 15.9 points, 6.3 assists, 3.9 rebounds, and 1.5 steals in 751 career games (675 starts).

"Jrue is one of the top guards in the NBA and we are thrilled to sign him to this extension," said Bucks general manager Jon Horst. "Adding him to our team has made us better on both ends of the floor.

"He's an elite defender and an impactful offensive player with the ability to score, shoot and facilitate. Beyond basketball, Jrue and his wife Lauren have already demonstrated the real impact they're willing to make in our community through the Jrue and Lauren Holiday Fund."