Bargnani's agent, Leon Rose, told ESPN.com on Tuesday night that the Raptors -- who later this week will officially sign Turkoglu away from Orlando -- have reached an agreement in principle on a contract extension for the 7-foot Italian, who was selected No. 1 overall by the Raptors in the 2006 draft.
The deal, according to NBA front-office sources, would span five seasons starting in 2010-11 and earn Bargnani an estimated $50 million.
Rose declined to discuss contract specifics, but Bargnani was with Raptors officials to formally sign the contract at 12:01 a.m. Wednesday when the league's moratorium on signings and trades was lifted.
Formally signing Bargnani to an extension this month, coupled with Turkoglu's forthcoming arrival, would give the Raptors a firm handle on at least two-thirds of their frontline for the next few years, as they continue to try to convince face of the franchise Chris Bosh to commit his long-term future to the team.
Bosh is also eligible for a contract extension later this month but has said he is intent on playing out next season and waiting until the highly anticipated summer of 2010 to decide whether to stay in Canada or relocate.
Senior writer Marc Stein covers the NBA for ESPN.com.