Indianapolis, IN -- (Sports Network) - The Indiana Pacers have picked up the contract option on forward Stephen Graham, the team announced on Monday.

A three-year veteran who signed with the team as a free agent last summer, the 25-year old played in 22 games for the Pacers this season, averaging 4.0 points.

"Stephen is an exceptional individual on and off the court," Indiana president of basketball operations Larry Bird said. "He has a great work ethic and over the course of last season, we saw major improvement from last summer."

In 58 career games, which included 13 with Cleveland in the 2005-06 season and 14 with Portland in 2006-07, he has averaged 3.3 points.