With the new contract, James has racked up $532 million in guaranteed career earnings, making him the highest-paid NBA player ever, when it comes to salary. The 37-year-old's earnings now surpass Brooklyn Nets star Kevin Durant.
The extension also includes a player option for the 2024/25 season, meaning James will have the choice to opt out of the final year of his contract with the Lakers.
News of the deal shuts down speculation that James would become a free agent next year. The four-time NBA champion instead looks to make more history with the Lakers, CNN reports.
As the season kicks off on October 18, James, if he avoids injury, is on track to take the crown as the NBA's all-time leading scorer, which would mark an overtake of Kareem Abdul-Jabbar.
James averaged 30.3 points per game last year despite the Lakers facing a difficult season and missing the playoffs.
However, the LA team has the flexibility in their salary cap to add another max contract player to its already star-studded roster of James, Russell Westbrook, and Anthony Davis.