Jeremy Lin signed a three-year offer sheet with the Houston Rockets, according to ESPNNEWYork.com.

Citing a source close to the deal, ESPN said the contract is worth more than $25 million, with Lin earning $5 million in the first year, $5.2 million in the second year and $14.8 million in the third and final year. The New York Knicks have three days to match the Rockets' offer.

Initially, reports had suggested the Rockets had offered a 4-year deal for around $28 million. That deal included a salary of more than $9 million in the final two years.

However, after Knicks coach Mike Woodson said New York would "absolutely" match any offer made by the Rockets, the Houston franchise decided to play hardball and put pressure on the Knicks by increasing the salary for the third year.

"Jeremy Lin has always been a big part of what we're trying to do as we move forward with our franchise," Woodson told reporters in Las Vegas on Thursday.

In the original offer, the Knicks would have paid a third-year salary of $9.3 million, but now with an $5.5 increase, Houston hope the decision will have an effect on the Knicks' decision to keep their point guard at Madison Square Garden.

Both the Rockets and the Knicks desperately want Lin, who averaged 18.2 points and 7.7 assists per game in 25 games as a starter last season.

The Rockets have also come out as serious contenders for All-Star center Dwight Howard, but it remains to be seen how Houston will go about finding cap space after also offering a multi-year deal to Chicago Bulls center Omer Asik.