"I am hopeful that we can finalize something by the close of the business week," team president Robert Rowell said today.

Nelson, who had two years left on the contract he signed last year, would get a raise from $3.1 million to $5.1 million a year under the new deal, according to the Contra Costa Times.

In exchange, the third year of the deal would convert to a team option, the paper said. If the option was not exercised, Nelson would $1 million under a five-year consulting deal with the team.

The Warriors will play in Hawaii against the Los Angeles Lakers in exhibition games in October.

Nelson said at the end of the season that he wasn't sure if he'd return to the sidelines for a 29th season as an NBA coach. He originally said he'd make his decision by July 1, but talks dragged on all summer before nearing a resolution.

"It went on long enough," Nelson told the Contra Costa Times. "Negotiations could have gone on until training camp started, but I didn't want that."

Nelson, who turned 67 in May, went 42-40 in his first season back with Golden State, where he also coached from 1988-95. His 1,232 career coaching victories are the second-most in NBA history.

It was the most successful season in years for the Warriors, who had gone 12 straight seasons without a winning record or a playoff berth before Nelson's return.

Golden State clinched the playoffs on the final day of the regular season, then shocked the top-seeded Dallas Mavericks in the first round, beating the NBA's best regular-season team — and Nelson's former employer — in six games.

That was Golden State's first playoff series win since 1991 and just the third time an eighth seed had won an opening-round series.

The Warriors lost their second-round series in five games to Utah, although all of the losses were close.

The Warriors tinkered with their roster in the offseason to cater to Nelson's preferred small-ball style of play. Guard Jason Richardson was traded to Charlotte for the athletic big man Brandan Wright. The Warriors also drafted Italian guard Marco Belinelli, who fits well into the team's up-tempo style of play.