Damian Lillard is finalizing a three-year deal worth $42 million to return to the Trail Blazers, ESPN’s Shams Charania reported on Thursday. The deal is expected to include a player option for 2027-28 and a no-trade clause.

The Milwaukee Bucks waived Lillard on July 1, then performed some salary cap gymnastics, stretching the remaining $113 million left on his contract over the next five years, to sign centre Myles Turner of the Indiana Pacers.

Lillard is expected to miss the 2025-26 season while rehabbing a torn Achilles.

Lillard underwent surgery on May 2 after tearing his Achilles during the Bucks’ 129-103 loss in Game 4 of the first round of the playoffs against the Pacers. 

Despite being in the back end of his career, Lillard maintained his career averages during his two seasons in Milwaukee. He averaged 24.6 points and 7.0 assists while shooting 50.6 per cent from the field and 36.4 per cent from three.

The Weber State product was selected with the sixth pick in the 2012 NBA Draft by Portland.

One of the best Trail Blazers of all-time, “Lillard and the Trail Blazers both deeply cared about the comeback in recent weeks,” per Charania, which led to multiple meetings between the point guard, Portland general manager Joe Cronin and head coach Chauncey Billups to lay the groundwork for the return. Lillard kept a house in the city, where his family and children still reside.

In 11 years with the franchise, Lillard was named to seven all-star teams and ranks first among all Trail Blazers players in points scored, second in assists and third in games played.

Lillard requested a trade from Portland after missing the playoffs in 2022 and ’23 and was eventually shipped to Milwaukee as part of a three-team deal.

Portland finished 12th in the Western Conference in 2024-25 and acquired guard Jrue Holiday earlier this off-season from the Boston Celtics, adding the veteran to a young core that includes Canadian Shaedon Sharpe and 2023 third overall pick Scoot Henderson.