Tennessee first-year men’s basketball coach Bruce Pearl has a new six-year contract worth an average of $1.3 million annually.

UT President Dr. John Petersen and athletic director Mike Hamilton made the announcement that an agreement was reached Wednesday.

Pearl’s original contract was five years and paid him $800,000 annually.

Pearl will earn $1.1 million next season with the contract calling for different portions of his salary to increase each year through the final year of his contract, 2011-2012, when he’ll make $1.5 million.

"In his first year at Tennessee, coach Pearl accomplished more than we could have hoped for," Hamilton said in a release. "His energy and enthusiasm have brought new life to Tennessee basketball."

The No. 14 Vols enter the SEC tournament today as the East Division champions, boasting a 21-6 record after finishing 12-4 in the SEC. UT also has the sixth-highest RPI, which indicates it will be among the top-seeded teams in the NCAA tournament.

"I’m really grateful to Dr. Petersen, Mike Hamilton, our staff and our players, and I really appreciate the support we received from the fans,’’ Pearl said. "I’m blessed, and I’m committed. I am pleased we can now focus on postseason play and try to win a championship.’’

Pearl’s base salary increases from $225,000 to $300,000, and he’ll receive monies for radio and television commitments of $300,000 along with an endorsement fee of $300,000, a public relations fee of $150,000 and a $50,000 guarantee for camps, according to the UT release.

The contract also includes buyout clauses for the university and Pearl, should either choose to break the deal.

If Pearl chose to leave the Vols for another coaching opportunity before 2012, he’d have to pay UT $1 million over 36 months.

Tennessee’s buyout is Pearl’s base salary for each year remaining on his contract plus a year of radio and TV, endorsements, public relations fee and an extra $250,000 over 36 months.

Kentucky’s Tubby Smith leads SEC coaches in salary with a contract averaging $2.2 million per year. Florida’s Billy Donovan has a contract worth $1.7 million annually.

Football coach Phillip Fulmer remains the highest paid coach at UT, making $2.05 million. Pearl is next with his deal, averaging $1.3 million per year, while Lady Vols’ basketball coach Pat Summitt makes $824,500 annually.

"Not only is Coach Pearl one of the very best coaches in the nation, but more importantly, he has become a great ambassador for our university during his tenure at Tennessee," Petersen said in the release. "The Board of Trustees and I are happy that he will be here for the next six years."