Lue, 39, took over after David Blatt was fired in January and
led the Cavs to the NBA title in his first head coaching role.
The rookie coach was praised for having a good relationship with
LeBron James, who had clashed with Blatt prior to his
termination.
After compiling a 27-14 record down the stretch in the regular
season the Cavs caught fire in the playoffs, sweeping Detroit
and Atlanta, before beating Toronto in six games and rallying
from a 3-1 deficit to stun Golden State in the Finals.
Lue had not signed a contract as a head coach and was working on
a four-year deal worth $6.5 million as Blatt's top assistant.
Negotiations began following their championship triumph.
(Writing by Jahmal Corner in Los Angeles; Editing by Peter
Rutherford)
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