Former Portland Trail Blazers’ guard Damian Lillard (0) takes in the moments in his first return to Moda Center as a Bucks’ player. (Jaime Valdez/Portland Tribune)

Damian Lillard is headed back to Portland.

ESPN is reporting that Lillard, a nine-time NBA All-Star who played with the Blazers for for 11 seasons before being traded in 2023, has agreed to a three-year, $42 million contract with the Trail Blazers, marking a homecoming for the franchise’s all-time leading scorer less than a year after he was traded to Milwaukee.

The new deal comes just weeks after the Bucks waived Lillard and stretched the remaining $113 million on his previous contract to create space for free-agent center Myles Turner.

Lillard, 35, is expected to miss the entire 2025–26 season as he recovers from surgery to repair a torn Achilles, he sustained during Milwaukee’s first-round playoff series against the Indiana Pacers in April.

Lillard’s return brings full circle a whirlwind 18 months in which Portland traded the All-NBA guard to Milwaukee in 2023. As a Blazer, Lillard made seven All-NBA teams and led the Blazers to eight playoff appearances.

Even sidelined, Lillard is expected to earn $70 million during the 2025–26 season from his combined Milwaukee and Portland deals, with $141 million in total salary coming over the next two years.

Portland is aiming to build on a promising 22–18 finish to last season, during which the team ranked in the NBA’s top five in overall defense and third in transition defense. With Lillard back in the fold — even in a mentoring or off-court role while recovering — the Blazers are hoping to pair their future with a familiar face from their past.

ESPN say Lillard’s chose to return to Portland to be closer to his children.