Pacers sign Alex Poythress to deal that ends 2-way label

INDIANAPOLIS -- The Indiana Pacers have signed forward Alex Poythress to a new contract that will end his two-way designation.

Poythress's new contract is guaranteed for $778,000 this season, and it becomes fully guaranteed at $1.54 million for 2018-19 if he isn't waived by July 25, sources told ESPN's Adrian Wojnarowski.

Indiana now has $5.3M in remaining cap space after signing Poythress, according to ESPN's Bobby Marks. The Pacers currently have 14 guaranteed contracts that will increase to 15 if veteran Damien Wilkins is retained past the Jan. 7 cut date, according to Marks.

Poythress started the season shuttling between the Fort Wayne Mad Ants of the G League and the Pacers. But after watching him in 11 games, Indiana decided to keep Poythress with the NBA team. He's averaging 0.9 points and 0.7 rebounds.

Information from The Associated Press contributed to this report.