JULY 25TH, 7:56am: Nelson's deal will pay him $8.6MM in each of the first two seasons, and $8MM in year three, tweets Alex Kennedy of HoopsWorld. The third season is partially guaranteed, but Nelson could make over $25MM if he receives the full guarantee.

JULY 16TH, 9:20pm: Jameer Nelson has signed a three-year deal with the Magic, tweets the Orlando Sentinel's Joshua Robbins.

JULY 5TH, 2:34pm: Nelson's agent confirmed to Chris Tomasson of FOX Sports Florida that Nelson's new contract will be for three years (Twitter link).

9:52am: Jameer Nelson and the Magic have reached an agreement on a new contract, according to Joshua Robbins of the Orlando Sentinel (via Twitter). The point guard turned down his player option for 2012/13 in hopes of signing a multiyear deal to remain in Orlando.

Reports on the amount of Nelson's 2012/13 option varied from source to source, perhaps due to incentives included in the deal, but it would have paid him at least $7MM, and perhaps in excess of $8MM. However, Nelson wasn't interested in playing on an expiring contract and becoming a year-long trade chip. While his new contract may not match the annual salary he would've earned in 2012/13, it's a near certainty that it will be for at least two or three years.

Nelson struggled at times this past season, setting a career-low in FG% (.427), and averaging just 11.9 PPG and 14.6 PER. But the 30-year-old is still a capable point guard and has expressed a desire to stay in Orlando long-term, something that can't be said about all the players on the Magic roster.

Nelson is the latest domino to fall on the point guard market, as Deron Williams, Steve Nash, Goran Dragic, George Hill, and Andre Miller have already agreed to deals.