Klay Thompson is set to sign a new five-year, $189.6 million contract with the Golden State Warriors when free agency officially begins on Sunday.

Back in January it was reported that Thompson – an unrestricted free agent – would be interested in joining the Los Angeles Lakers if the Warriors didn’t offer him a max contract and LA traded for Anthony Davis and opened a contract slot close to his max.

But the Warriors’ All-Star shooting guard is committed to staying with the former NBA champions, who also want to re-sign All-Star Kevin Durant. Both players sustained injuries during the NBA Finals against Toronto earlier this month as the Raptors ran out 4-2 winners to lift their first Championship.

Thompson sustained a torn ACL during Game 6 and will miss a significant portion of the 2019-20 season while Durant ruptured his Achilles in Game 5. But while Golden State don’t have enough salary cap space to pursue top-dollar free agents from other teams this year, it shouldn’t stop them from keeping their elite 3-point shooter.

Thompson averaged 21.5 points and shot 40.2% on 3-pointers last season as he formed one of the best backcourts in the league alongside All-Star Steph Curry. That made it a remarkable eighth time in his eight NBA seasons that he has shot at least 40% from beyond the three-point line.

The Warriors, who can keep exceeding the salary cap and luxury tax lines to re-sign their own free agents, are expected to generate significant revenue by moving into the new Chase Center in San Francisco next season, and they want to keep a championship-calibre roster on the court.

But Golden State are no longer the undisputed power in the west with the Lakers currently the 4.20 market leaders to land the NBA Championship next year and 2.88 favourites for the Western Conference.