LOS ANGELES (AFP) - The Houston Rockets inked star guard James Harden to a four-year contract extension worth US$118 million (S$158.75 million), the National Basketball Association team announced on Saturday.

The deal was announced after the team's introduction of newly acquired free agents Eric Gordon and forward Ryan Anderson.

"I'm truly excited more than ever," Harden said. "Ever since I stepped foot in Houston, it's nothing but love... I'm happy to be here another four years. It's been a progress. It's been a build up. The addition of our new signings and a couple other pieces, good things are going to happen next year."

Harden, 26, arrived in Houston prior to the 2012-13 season via a trade from Oklahoma City. With the Rockets, he has developed into one of the league's premier scorers.

Under the deal his annual salary will go from US$16 million to US$26.5 million under the new salary cap next season, and increase incrementally over the remainder of the contract.

Harden enjoyed the best season of his career in 2015-16, averaging 29 points, 6.1 rebounds and 7.5 assists per game for a Rockets team that was eliminated in the first round of the playoffs by the Golden State Warriors.