Report: Cavs, Tyronn Lue confident in reaching contract extension

The Cleveland Cavaliers and coach Tyronn Lue have started talking about a contract extension, and the two sides are confident they will reach a deal soon, Cleveland.com reports.

Lue did not sign a new contract when he was promoted from associate head coach to take over for David Blatt in January, sources previously told ESPN.

Lue led Cleveland to a 27-14 mark in the second half of the season and through the playoffs to the NBA championship.

He was already the league's top-paid assistant coach when he was added to Blatt's staff in the summer of 2014 with a four-year deal worth a total of $6.5 million.

The Cavs and Lue's representatives came to a verbal agreement on a renegotiated deal after his promotion that would pay him $3 million prorated for 2015-16 and $3 million next season, with a team option for a third year at $3.5 million with a buyout, ESPN's Ramona Shelburne reported in January.

There were no performance standards or stipulations for Lue to meet to keep the verbal agreement valid after the season, a source familiar with the negotiations said.

Despite not inking an augmented contract since becoming the Cavs' head coach, Lue is signed under his old deal through the 2016-17 season.

The $3.2 million average annual salary reportedly agreed upon by Lue's representatives and the Cavs would put Lue among the bottom half of the league's coaches, in terms of compensation.

ESPN's Dave McMenamin contributed to this report.