Alex Caruso, a two-time NBA All-Defensive Team guard, has reportedly reached an agreement on a four-year, $81 million contract extension with the Oklahoma City Thunder, according to a report by Moneyline's Shams Charania. Caruso is recognized as one of the elite perimeter defenders in the NBA, consistently ranking among the top five players in key defensive metrics such as deflections, field-goal percentage allowed when contesting shots, and points given up per direct pick when acting as a ball-handler defender, as documented by ESPN Research.

This contract extension secures Caruso with the Thunder through the 2028-29 season, effectively keeping him out of free agency. In a discussion with Jake Fischer from The Stein Line in late December, Caruso expressed his belief that Oklahoma City was a strong fit for him, stating that he was excited about being part of a team he views as 'ascending.' The extension positions him as a crucial component of the Thunder's playoff aspirations moving forward.

Prior to this agreement, Caruso was on track to enter free agency in 2025 after the conclusion of a four-year contract, valued at just under $37 million, that he initially signed with the Chicago Bulls in 2021. The Thunder acquired him in a June trade that sent guard Josh Giddey to Chicago. During his time with the Bulls, Caruso secured a regular place in the starting rotation towards the end of the 2023-24 season, achieving a career-high average of 10.1 points and 3.8 rebounds per game, along with an impressive pace of 3.7 deflections per night. However, his performance dipped after transitioning to a bench role with Oklahoma City, compounded by a hip injury that sidelined him for eight games in late November. When active, Caruso has contributed averages of 5.7 points, 2.9 assists, 1.9 steals, and 0.6 blocks over 19 games. The Thunder’s decision to extend his contract reflects their confidence in his ability to adapt to his new environment and reclaim his status as a defensive powerhouse.

Following a disappointing second-round exit to the Dallas Mavericks in the 2023-24 postseason, the Thunder focused on enhancing their defensive capabilities during the offseason. The addition of Caruso, along with Isaiah Hartenstein—who signed a three-year, $87 million contract—underscores Oklahoma City's commitment to strengthening their defense. With both Hartenstein and Caruso secured for the foreseeable future, the Thunder aim to position Shai Gilgeous-Alexander and the team on a trajectory towards securing the franchise's first championship since 1979.