The Miami Heat are making sure Pelle Larsson is part of their future.

Larsson has agreed to a four-year, $60 million contract extension with Miami, according to ESPN’s Shams Charania. The deal also includes a mutual option for the 2030-31 season.

This is a major commitment to a player who took a big step forward last season.

Larsson averaged 11.4 points, 3.5 rebounds and 3.4 assists while starting 54 of his 70 games for the Heat. He became an important part of Erik Spoelstra’s rotation and showed Miami that he could handle a much larger role.

The 25-year-old guard now gets some long-term security with the organization that drafted him after his rights were acquired by Miami in 2024.

The timing of the extension is also interesting considering how dramatically the Heat have changed their roster this offseason. With Giannis Antetokounmpo and Klay Thompson now joining the team, Miami is building around a very different group, and keeping Larsson gives the Heat another young piece who already knows Spoelstra’s system.

Larsson is coming off his best season as a pro, and Miami is clearly betting that his development is only beginning.

Now, he gets the opportunity to prove exactly how valuable he can be alongside Miami’s new-look roster.