Anderson Varejao and the Cleveland Cavaliers are getting closer to an agreement on a contract extension, Yahoo! Sports reported.

Talks between the two sides have been going well in recent weeks. No deal is on the immediate horizon, but all signs point to a contract agreement in the near future.

Varejao, 32, is scheduled to become an unrestricted free agent after this season. There is mutual interest between both parties to reach an extension agreement as Varejao, a second-round draft pick in 2004, has spent his entire 10-year career with the Cavaliers.

LeBron James is reported to be close with Varejao, as the two played together for six seasons before James left for the Miami Heat in 2010.

Cavs' coach David Blatt has said that Varejao will start over 2011 first-rounder Tristan Thompson. Varejao's playoff experience is said to be a very important factor for Cleveland this season.

However, Varejao has struggled with injuries in recent seasons. The big man appeared in just 182 of a possible 328 games over the last four years. When healthy, the 32-year-old is one of the most aggressive and physical rebounders and defenders in the NBA.

Varejao averaged 8.4 points and 9.7 rebounds in 27 minutes a game last year. He is scheduled to make $9.8 million in the final year of his deal this year.