Gilbert Arenas is one-step away from accepting a six-year offer from the Washington Wizards that could be worth as much as $127 million, according to a source close to both sides.

Ernie Grunfeld, Washington Wizards team president, offered the point guard on Tuesday morning a six-year deal for $127 million, one of two offers presented to Arenas just after the free agency period began. The Golden State Warriors also made a max deal offer to Gilbert Arenas. The Warriors extended to Arenas a five-year deal for $101 million. Because Arenas was under contract with them, The Wizards are allowed to offer six years while other teams can only throw in five-year contracts.

Although the Wizards' proposal is for an extra year and $26 million, that is not a deciding factor for Arenas, the source said to The Washington Times. It may be possible that the Wizards' offer carries more weight with Arenas because the guard has surfaced as a star in the NBA during his time in the District. According to the source Arenas is likely to take less than the max to help give the Wizards more financial flexibility. Arenas probably will not agree to the new deal until returning from China, where he participates as part of a two-week promotional tour with Adidas.

Last month, Arenas decided to get out of the final year of his $65 million deal with the Wizards to follow a long-term max deal. During the entire process, he maintained that his wish was to return to Washington. The Warriors – the team that drafted him from Arizona – showed their interest in Arenas when point guard Baron Davis suddenly choose to give up the final year of his deal with Golden State. Had he not opted out, Davis would have earned $17.8 million had.

The Washington Wizards were thought to be the only playoff team with the salary cap flexibility to satisfy Arenas' demands, but Davis' move freed up Golden State.

The Wizards re-signed, on Monday, power forward Antawn Jamison for a period of four years and $50 million, one of Arenas’ conditions for re-signing himself.