The deal, first reported by TNT, begins in 2019. It includes a fourth-year player option and a 15 percent trade kicker, the source said.
Wall, 26, has two years and $37 million left on his current deal.
Earlier this month, Wall said he and his family were taking their time on deciding whether to accept the Wizards’ “supermax” offer.
“Everybody knows where I want to be,” Wall told NBA-TV. “We’ve been in the same position over and over. We finally found a way to get over that hump with us as individuals, as players, coaching staff, GM, everybody we got to make ourselves better. We got to improve. Everybody has to improve every year. I got to improve and be in better shape and condition to be able to close out games so I won’t be fatigued.”
Already this offseason, Washington brought back Otto Porter Jr., matching the $106 million, four-year offer sheet from the Brooklyn Nets. The move kept Washington’s young trio of Wall, Porter and Bradley Beal intact.
Earlier this week, Wizards owner Ted Leonsis said he was confident Wall would sign the extension, and added he would do what it takes to keep Washington as a contender.
“I think we’ve proven that we have as much resources and as much tools as anybody in the league and we’re in the [luxury] tax,” Leonsis told The Washington Post. “We’ll spend whatever we need to get better, but we’re going to get better by keeping our core together and then adding to it.”