Gilbert Arenas has agreed to re-sign with the Washington Wizards for $111 million over six years, essentially taking millions less so that his team could have more financial flexibility, two newspapers reported Thursday.

Arenas told the Washington Times and Washington Post that he was offered a maximum deal in the neighborhood of $127 million on Tuesday, the first day of the free agency period.

"(The Wizards) offered me the max, and I'm basically giving back $16 million," Arenas told the Washington Times from China, where is traveling as part of promotional tour for a shoe company. "This is in line with what I've been saying the whole time. You see players take max deals and they financially bind their teams. I don't wanna be one of those players and three years down the road your team is strapped and can't do anything about it."

The three-time All-Star became a free agent after opting out of the final year of his six-year, $65 million contract. He initially said he was opting out to receive a max contract, but he later indicated he would be flexible in negotiations. More