WASHINGTON — Gilbert Arenas has agreed to re-sign with the Washington Wizards for $111 million over six years, essentially taking millions less so that his team could have more financial flexibility, two newspapers reported today.

Arenas told the Washington Times and Washington Post that he was offered a maximum deal in the neighborhood of $127 million on Tuesday, the first day of the free agency period.

"(The Wizards) offered me the max, and I'm basically giving back $16 million," Arenas told the Washington Times from China, where is traveling as part of promotional tour for a shoe company. "This is in line with what I've been saying the whole time. You see players take max deals and they financially bind their teams. I don't wanna be one of those players and three years down the road your team is strapped and can't do anything about it."

The three-time All-Star became a free agent after opting out of the final year of his six-year, $65 million contract. He initially said he was opting out to receive a max contract, but he later indicated he would be flexible in negotiations.

Arenas also said that he would not re-sign unless the team retained two-time All-Star forward Antawn Jamison. The Wizards lived up to that part of the bargain Monday by giving Jamison a four-year, $50 million deal.

Arenas has proven to be one of the most dynamic players in the league when healthy, but two knee operations caused him to miss most of the last season. He has averaged 22.8 points, 5.5 assists and 4.2 rebounds in his seven-season NBA career.

The Wizards cannot comment on talks with Arenas or announce the deal until a league-mandated moratorium expires next week.

"It's a relief," Arenas told the Washington Times. "It was a burden at the same time. Your whole city is depending on you, wondering if you're going to make the right decision. I'm a franchise player and sometimes franchise players need to make franchise decisions."