(REUTERS) - The Cleveland Cavaliers and coach Tyronn Lue have agreed on a new five-year deal worth US$35 million (S$47.5 million), the Cleveland Plain Dealer reported on Monday (July 25).

Lue, 39, took over after David Blatt was fired in January and led the Cavs to the National Basketball Association (NBA) title in his first coaching role.

The rookie coach was praised for having a good relationship with LeBron James, who had clashed with Blatt prior to his termination.

After compiling a 27-14 record down the stretch in the regular season, the Cavs caught fire in the play-offs, sweeping Detroit and Atlanta, before beating Toronto in six games and rallying from a 3-1 deficit to stun Golden State in the finals.

Lue had not signed a contract as a coach and was working on a four-year deal worth US$6.5 million as Blatt's top assistant. Negotiations began following their championship triumph.