Paul posted a message on his Twitter account Monday morning, saying "I'M IN!!!" #CLIPPERNATION
Paul led the Clippers to their first Pacific Division title last season and his decision to stay is the second big victory for the longtime losers in this offseason, following the signing of Doc Rivers as their new coach.
Paul can earn about $108 million over five years with the Clippers. The deal can't be signed until July 10, after next season's salary cap is set.
The two-time Olympic gold medalist has helped turn around the Clippers franchise in two seasons since coming in a trade from the New Orleans Hornets. They made the playoffs in both seasons, advancing to the second round in 2012, and went 56-26 this season, the best record in their history.
Paul averaged 16.9 points, 9.7 assists and an NBA-best 2.4 steals per game. He was the Western Conference player of the month in December, when the Clippers went 16-0.