Capela is coming off of a career year in which he averaged 13.9 points, 10.8 rebounds and 1.9 blocks. He also made a league-high 65.2 percent of his field goal attempts.
The 6-foot-10, 240 pound center is entering his fifth National Basketball Association season.
Capela - the 25th overall pick in the 2014 draft - had a terrific 2017-18 campaign.
Capela was reportedly seeking $100 million, putting him on par with Thunder big man Steven Adams (four years, $100 million) and Jazz eraser Rudy Gobert (four years, $102 million).
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The Houston Rockets made the right choice in pursuing Chris Paul past year, to say the least. "I'm happy for him".
Capela has been an excellent fit on the Rockets, and the team re-sign the defensive-minded, undersized yet highly effective center if they wanted to continue as one of the very best teams in the league.
Capela finished second in the running for the NBA Most Improved player award this season. Houston also re-signed swingman Gerald Green in early July on a one-year pact.
That trio that will be around for the next few years and helped guide Houston to a 42-3 record when in the lineup during the regular season en route to the Western Conference Finals, as Capela is arguably the most ideal center in Houston's motion, 3-point heavy offense. His salary shoots up to $43 million in 2021 and he had a player option of $46 million in 2022.