San Antonio Spurs reserve guard Patty Mills agreed Wednesday to a new three-year deal in the $12 million range with the NBA's freshly minted champions, according to sources close to the process.

ESPN.com reported late Tuesday that Mills and the Spurs were close to reaching agreement on a new contract despite the fact that San Antonio's off-the-bench perimeter spark plug just learned that he needs shoulder surgery that is expected to sideline him until at least January.

The San Antonio Express earlier reported Wednesday's verbal agreement between Mills and the Spurs, which can't be made official until July 10, when a league-wide moratorium on signings and trades is lifted.

Mills, a second-round draft pick by Portland in 2009, averaged 10.2 points in 18.9 minutes per game for the Spurs in his fourth full season, hitting a career-high 135 3-pointers.