The two sides had been working on a new contract since the Indianapolis Colts placed the transition tag on Daniel Jones earlier in March.
The transition tag guaranteed Jones would be in Indy on a one-year, $37.8-million contract unless another team signed him to an offer sheet. Jones inked a one-year, $14-million deal with the Colts last offseason as a free agent.
Jones led the Colts to an 8-2 record in the first 10 games of the 2025 season but suffered a season-ending torn Achilles in early December. The Colts lost their final seven games and missed the playoffs. Jones is expected to be ready for the start of the 2026 campaign and could even recover in time for training camp, a source told Schefter.