Free agent JR Smith has agreed a lucrative new four-year contract with the New York Knicks, according to the agent of the 27-year-old guard.

Smith, who enjoyed his breakout season in the NBA during the last campaign, stands to earn $24.7 million over the course of the deal, which contains a player option in the final year of the contract.

ESPN claims that Leon Rose, the representative of Smith, has confirmed terms between the Knicks and Smith have been agreed, with the contract the maximum that can be offered under the early Bird rights.

These rights allow a team to offer a standard annual rise of 7.5 percent on top of the average player salary. ESPN reports the average player salary is approximately $5.5 million, with official NBA figures set to be released next week.

Smith drew interest from the likes of  the Milwaukee Bucks, Detroit Pistons and Dallas Mavericks, but wanted to stay in New York having won the league's Sixth Man of the Year award with the Knicks last season.

He averaged 18.1 points and 5.3 rebounds per game in 2012-13, although his form dipped significantly in the playoffs - which may represent why his contract is worth less than other shooting guards not the market as free agents.

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