The new deal gives the 37-year-old $532 million in guaranteed career earnings, making him the highest-paid player in league history, surpassing Brooklyn Nets star Kevin Durant.
The deal includes a player option for the 2024/25 season, meaning James can opt out of the final year of his contract if he no longer wishes to stay with the team.
CNN has reached out to the Lakers to confirm the new contract.
The new season begins October 18, and if he doesn’t get injured, James should be on track to overtake Kareem Abdul-Jabbar as the NBA’s all-time leading scorer.
James averaged 30.3 points per game in 56 appearances last season despite the Lakers missing the playoffs in a difficult season.
But the franchise now has the salary cap flexibility to add another maximum-contract player to the team, potentially bolstering the star-studded roster that already boasts James, Russell Westbrook and Anthony Davis.