New York Knicks guard Jose Alvarado will return to the reigning NBA champions on a three-year contract worth more than $14.5 million, ESPN first reported on Friday.

Alvarado, considered a key reserve, had declined his player option for $4.5 million next season, per multiple reports.

“I’m Home,” Alvarado, a Brooklyn native, wrote on Friday on X, ending his post with a series of orange and blue hearts in the Knicks’ team colors.

I’m Home ??????????

— Jose Alvarado (@AlvaradoJose15) June 26, 2026

Alvarado, 28, averaged 6.6 points, 3.8 assists, 1.0 steals and 16.9 minutes in 28 games (three starts) in the regular season after the Knicks acquired him from the New Orleans Pelicans ahead of the NBA trade deadline in February.

The Pelicans also traded forward Latavious Williams as part of the deal and received guard Dalen Terry, cash, a 2022 second-round draft pick (Jaron Pierre Jr. was later selected) and a 2027 second-round pick.

Alvarado averaged 4.2 points, 1.2 assists and 9.4 minutes in 18 playoff games as a reserve during the Knicks’ run to their first NBA crown in 53 years.

Undrafted out of Georgia Tech, Alvarado has career averages of 8.0 points, 3.2 assists, 2.3 rebounds, 1.1 steals and 20.0 minutes in 296 games (37 starts) for the Pelicans (2021-26) and Knicks.

–Field Level Media