Per game Paul in the first season after moving to Houston has scored 18.6 points, 6.4 rebounds and 7.9 assists.
The Rockets acquired Paul a year ago in an opt-in-and-trade deal with the LA Clippers.
Paul is going into his 14th season in the league, during which he'll be 34 years old.
Paul posted this on twitter shortly after the 11:01 pm central opening of free agency.
As soon as the clock struck midnight, the Rockets and Chris Paul agree to a deal.
"UNFINISHED BUSINESS... RUN IT BACK", he tweeted.
Losing Ariza's shooting, defense, and veteran presence in the rotation is a sizeable loss, but securing Paul's services long term is a far bigger win for Daryl Morey than Ariza's departure is a defeat.