Oct 26, 2008 9:22 AM EST

Warriors coach Don Nelson confirmed Saturday that he has agreed to a two-year contract extension that will keep him with the team through the 2010-11 season.

A league source said the deal is expected to be worth approximately $12 million.

"It wasn't my idea," said Nelson, who was only signed through the end of the season. "It was fine with me to wait or go year-to-year, but they came to me and wanted me to commit to three (total) years. I'm pretty excited about it.

"And it's quite an honor, really, to be wanted."

Via San Francisco Chronicle