Cotton, 27, exercised his right to opt out of his previous deal in April after the NBL announced drastic player salary cuts amid a financial crisis brought about by the COVID-19 pandemic.

The league's cost-cutting deal with the Australian Basketball Players' Association would have seen Cotton's wage slashed by 50 per cent.

But the American has now signed a fresh long-term deal with Perth and will attempt to guide them to a third successive NBL title next season.

"I'm back for the next three seasons and I couldn't be happier sharing this news," Cotton said.

"There's no place like home."

Cotton joined Perth in 2017 and has been part of three NBL title wins, claiming two grand final MVP awards in the process.

Wildcats coach Trevor Gleeson welcomed Cotton's decision to return.

"Bryce is the type of guy who makes everyone else on the team a better player," Gleeson said.

"He's a pleasure to coach and a great teammate.

"Bryce is only 27 and to have him for the next three years and watch him at the peak of his career in a Wildcats jersey, it's going to be a fun ride."

Cotton's NBL back-flip follows a similar move by Brisbane star Matt Hodgson, who opted out of his existing deal before announcing a return this month.

Nick Kay (Perth), Casper Ware and Xavier Cooks (both Sydney) also opted out of their existing deals before last month's deadline.

Australian Associated Press