MEMPHIS, Tenn — Grizzlies coach Lionel Hollins has agreed to a new 3-year contract with the team.

Terms of the deal were not disclosed, but Hollins made the announcement Thursday as the team met with reporters to wrap up the season.

Hollins had been in negotiations with the team for weeks and said he talked to owner Michael Heisley earlier Thursday and finalized the deal.

He took over in January 2009 after Marc Iavaroni was fired and led the Grizzlies to a 40-42 record this season, 16 more wins than last year. The formerly woeful Grizzlies were part of the playoff picture before folding down the stretch, falling just short of their first .500 season in several years.