The young talent will sign for three years on a deal that will pay him an average of $16 million per season, according to Ian Rapoport of NFL Network, with $30 million fully guaranteed.
Watkins is just four years into his NFL career. At the age of 24, the deal would make him the fourth-highest-paid receiver in the league on annual average. Only Antonio Brown ($17 million per year), Mike Evans ($16.5 million), and DeAndre Hopkins ($16.2 million) are set to make more in each of the next three seasons.
His deal with the Chiefs would allow him to hit free agency again at age 27.
Watkins was projected to be a star coming out of Clemson, but he's battled injuries for much of his professional career and has just one 1,000-yard season to his name.
Now, he's set to join a Chiefs offense fronted by cannon-armed quarterback Patrick Mahomes and complemented by 2017 rushing champ Kareem Hunt, speedster Tyreek Hill, and star tight end Travis Kelce.