Sources: Pels extend Alvarado for 2 years, $9M

The New Orleans Pelicans have agreed to a two-year, $9 million extension with guard Jose Alvarado, sources confirmed to ESPN’s Bobby Marks on Saturday.

Alvarado, 26, had one year and $1.9 million left on his deal and now will be signed with the Pelicans through the 2025-26 season with a player option for 2026-27.

The 6-foot spark plug has become a fan favorite for his relentless energy and hustle on the court with the Pelicans, whom he’s been with the past three years. Alvarado initially joined New Orleans on a two-way contract in 2021 after a four-year career at Georgia Tech.

Last season, Alvarado averaged 7.1 points and 2.1 assists per game across 56 games for the Pelicans, and finished sixth in the NBA’s Sixth Man of the Year voting.

This year, he’s expected to slot in behind Dejounte Murray — who arrived in New Orleans in a trade back in June from the Atlanta Hawks — as the team’s second-unit point guard.

The Pelicans are looking to make the playoffs for the second straight year for the first time since the 2008-09 season and for just the third time in their 23 years in the Big Easy.