Financial terms were not announced but according to a report in the Chicago Tribune newspaper the contract is for five years and $47.5 million.

"Kirk Hinrich is imperative to the foundation of our organisation and we are extremely pleased to have him with us long term," said Bulls executive vice president of basketball operations John Paxson on the team's Web site.

"We are attempting to build a team based on character and commitment and these are both traits that Kirk possesses at a very high level.

"This is a very good day for the Chicago Bulls organisation."

The seventh overall pick of the 2003 NBA draft, Hinrich averaged a career-high 15.9 points and a team best 6.3 assists per game last season.

Hinrich has led the Bulls to the playoffs in the last two seasons and played on the U.S. team at this year's world championships in Japan.