Isaac agreed to a renegotiation of the last year of his current deal along with an extension, said the person, who spoke to The Associated Press on the condition of anonymity because the new contract cannot be finalized before the league's offseason moratorium is lifted Saturday.
ESPN first reported the agreement between Isaac and the Magic.
It's yet another success story for Isaac, whose career seemed in jeopardy a few years ago because of injuries that kept him sidelined for 2 1/2 years.
The No. 6 pick in the 2017 draft by the Magic hurt his left knee on Jan. 1, 2020, in a game at Washington. He returned and played two games in the pandemic bubble seven months later but blew out his left ACL in the second of those appearances. Isaac had other setbacks along the way in recovery — including a right hamstring injury that required surgery — and saw his 2022-23 season end early because of an adductor injury.
But this past season was a bounceback in many ways.
He averaged 6.8 points on 51% shooting, played in 58 games — 13 more than he played in the previous four seasons combined — and helped the Magic win the Southeast Division and return to the playoffs. Orlando coach Jamahl Mosley repeatedly credited Isaac for his defensive prowess.
"Elite, elite, elite defender," Mosley said late in the season.