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Houston Rockets guard Fred VanVleet is predicted to opt out of his $25 million player option for 2026-27 and sign a new deal with the franchise, The Athletic's John Hollinger reports.

The Houston Rockets headed into the 2025-26 season as one of the top contenders in the West. This was before an unfortunate injury to point guard Fred VanVleet, which occurred less than a month before the regular season began.

Fast forward to now, the point guard lost a season of his career due to rehab from the injury. Heading into the offseason, VanVleet has a $25 million player option for next season.

VanVleet and the Rockets will discuss the deal. The Athletic’s John Hollinger predicted that the guard will opt out of the player option for next season, but resign with the Rockets on a new deal that is team-friendly.

“Keeping him is likely a priority; BORD$ values the 32-year-old at $17.5 million, but I wouldn’t be surprised to see Houston go higher to lock up his services as both a floor general and leader,” Hollinger wrote. “For instance, three years at $70 million would give the Rockets a few million extra in wiggle room to fight the apron this year while still securing future dollars for VanVleet.”

$70 million over three years adds up to around $23.33 million annually. A slight pay cut that helps keep the Rockets further away from the tax apron.

Fred VanVleet’s Absence in 2025-26 Leaves Uncertainty for Rockets

VanVleet, 32, suffered a torn right ACL in the weeks leading up to the start of the 2025-26 season. This led to him missing all of the campaign.

Houston was left to find a replacement for the lead man, and the franchise picked up the pieces throughout the campaign. A combination of Amen Thompson and Reed Sheppard took on new roles during VanVleet’s absence.

Houston went on to finish with a 52-30 record in the regular season. However, the flawed point guard position shone brightly in the postseason, leading to a first-round loss to the Los Angeles Lakers.

A torn ACL is typically a nine-month recovery. Fred VanVleet is expected to be ready for the start of the 2026-27 season.

At 32 years old, Houston can’t help but be worried about whether he can return to the 14.1 points and 5.6 assists per game he averaged before the setback. A slight pay cut will be in the Rockets’ best interest for the veteran guard.

Houston Rockets forward Tari Eason is set to become a restricted free agent this summer. Meanwhile, guard Amen Thompson is eligible to sign a rookie-scale contract extension with the franchise. (Photo by Alex Slitz/Getty Images)

Rockets to Address Contracts of Tari Eason and Amen Thompson This Summer

In addition to addressing Fred VanVleet, the Houston Rockets have multiple other players heading into free agency this summer.

Tari Eason becomes a restricted free agent. An “informed prediction” for the forward’s new contract will be an annual salary of $22 million, says Varun Shankar of the Houston Chronicle.

Aaron Holiday, Josh Okogie, Jeff Green, and Jae’Sean Tate are set to take on unrestricted free agency this summer.

Both Reed Sheppard ($11.1 million) and Amen Thompson ($12.25 million) have team options for the 2026-27 season.

Thompson, 23, is eligible for a rookie-scale extension this offseason. He is seen as a key part of the Rockets’ core. If he remains unsigned, the All-Defensive First Team selection in 2025 is set to take on restricted free agency next year.

“Some reports suggest the Rockets will not take the chance and will extend Thompson sooner rather than later, signing the budding young star to a max contract,” Lachard Binkley of SI.com reports.

Houston, coming off a disappointing end to last season, have multiple areas of the roster to address this summer.