The Golden State Warriors have exercised their team option on the contract of Head Coach Don Nelson for the 2008-09 season, it was announced today by President Robert Rowell. Per team policy, terms of the agreement were not announced.

Several local newspapers (San Francisco Chronicle, Contra Costa Times) reported that Nelson's salary is $5.1 million.

“We’re extremely pleased with the job that Don has done this season,” said Rowell. “He’s done a terrific job of building on last year’s success and certainly has our team in position to challenge for another exciting post-season journey. As we’ve acknowledged before, we think he is one of the top coaches in the NBA and we’re happy that his unique style and expertise will continue to be an important part of our future success.”

Nelson, 67, is currently the second-winningest coach in NBA history (1,271 wins), trailing only Lenny Wilkens (1,332) on the league's all-time list. During his current stint with Golden State, he has guided the Warriors to a combined 81-63 regular season record (.563), including a 55-28 mark over the last calendar year (dating back to last March 5), the fifth-best record in the NBA during this stretch. Additionally, the Warriors advanced to the Western Conference Semifinals during last year's playoffs, highlighted by a First Round victory over the top-seeded Dallas Mavericks.