The deal includes $86 million in guaranteed money, $8 million in exceedingly reachable bonuses and another $12 million in incentives that could elevate the deal to $106 million over its term, league sources said.
Agent Brandon Rosenthal of Landmark Sports and Kings general manager Vlade Divac finalized details on the rookie-scale extension late into Sunday night in Sacramento, just hours ahead of the 6 p.m. ET Monday deadline for players from the draft class of 2016 to complete a deal.
The Kings announced the extension shortly after the deadline passed but didn't reveal its terms.
"Buddy has made tremendous growth each season since joining the team and we are thrilled that he will remain a King as we continue to build an exciting future here in Sacramento," Divac said in a statement. "He has quickly established himself as an elite shooter in the league and is an important part of our young, dynamic core."
This deal allows the Kings and Hield to avoid restricted free agency next summer.
Hield has been at the forefront of a Kings revival that started with him as the centerpiece of a DeMarcus Cousins trade to New Orleans in 2016. No player in NBA history has converted on more 3-pointers (275) in his first three seasons than Hield.
Hield has been a favorite of owner Vivek Ranadive, who was the driving force in pushing to acquire Hield in his rookie year with the Pelicans. Hield is coming off his best NBA season -- 20.7 points, 5.0 rebounds and 2.5 assists per game. He also shot 43% on 3-pointers.
Hield was the sixth overall pick in the 2016 NBA draft out of Oklahoma.