The deal includes a player option entering the fourth year, allowing Valanciunas to become a free agent in the summer of 2019. The extension will not kick in until the 2016-17 season.
Rumors of this deal came about on Monday, with Toronto and their center reportedly closing in on a four-year deal worth at least $60 million. The 23-year-old has averaged 10.9 points, 8.0 rebounds, and and 1.1 blocks in three seasons with the team.
Valanciunas is expected to make $16 million per year, but the team feels he is well worth it, calling him a significant part of what they are building.
The likes of Enes Kanter, Omer Asik, Robin Lopez, and DeMarre Carroll have all received similar deals this off-season.
Toronto is looking to do anything to have more postseason success, being bumped out of the first round as Atlantic Division champs the past two seasons. They have not made it to the conference semifinals since 2001.