WNBA's Seattle Storm signs star forward Lauren Jackson

Two-time MVP Lauren Jackson spurned the Phoenix Mercury and returned to the Storm, capping an offseason saga involving the WNBA's most sought-after free agent.

"She's so synonymous with the Storm and this city that I just couldn't imagine a season without her," CEO and president Karen Bryant said. "It's great that we don't have to contemplate that scenario anymore.

"All of our fears about her playing somewhere else and then us having to match up against her is now alleviated. I'm glad that she agrees with us that this is really the best place for her."

Jackson agreed Monday morning to a one-year deal that will pay her about $100,000, according to a league source.

"I'm honored to return to the city of Seattle and the Storm organization as I take this next step in my WNBA career," Jackson said in a statement. "I appreciate the patience and continued support of our fans and I look forward to celebrating the Storm's 10th anniversary with them at KeyArena this summer. I can't wait to return to Seattle and begin working toward another championship."

Several months ago it was uncertain if Jackson would play again for the Storm when she returned from last year's Summer Olympics in Beijing needing right ankle surgery. That ended her WNBA season and forced her to watch from the sideline as Seattle lost in the first round of the playoffs for the fourth consecutive season.

Coach Brian Agler kept track of Jackson during the offseason, and negotiations intensified over the weekend when she returned home to Australia after playing in Russia and the EuroLeague with Storm teammate Sue Bird and Phoenix's Diana Taurasi for Moscow's Spartak Vidnoe team.

"She always said to us she was going to make a decision when she got home to Australia to be somewhat removed from the distraction of playing in Russia," Bryant said. "She probably had Sue Bird in one ear and Diana in the other."

The Storm pushed for a long-term deal, but Jackson declined, and it's unclear if the eight-year veteran will retire in Seattle.

"She's at a point in her career where she's played nonstop, she's playing year-round, she's had some injuries, and I think for her it's more about being at that stage where she wants to keep her options open," Bryant said.

The 6-foot-5 forward was selected with the No. 1 overall pick in the 2001 draft and has played her entire WNBA career with the Storm. She is the franchise's all-time leader in points (4,602), rebounds (1,887), blocked shots (485) and games played (237). She has averaged 19.4 points and 8.0 rebounds.

Jackson, who also won the Defensive Player of the Year award in 2007, is expected to report to training camp shortly after it begins May 17. The season opener is June 6 in Sacramento.

Re-signing Jackson concludes a busy offseason in which the Storm replaced veterans Yolanda Griffith and Sheryl Swoopes with draft picks Ashley Walker and Mara Freshour and free agent Shannon Johnson. Seattle re-signed forward Janell Burse, forward Ashley Robinson, guard Tanisha Wright and center Suzy Batkovic, who played with the Storm in 2005.

"We feel real good about our roster, and the facts are everybody is better," Agler said. "But there's so many factors that play into the success of the team like chemistry and scheduling. Hopefully, we'll catch some breaks and stay healthy."

Percy Allen: 206-464-2278 or pallen@seattletimes.com