Jones' deal is worth $57 million with $34 million guaranteed, his agent, Drew Rosenhaus, told ESPN's Adam Schefter.
Set to play the final year of his rookie contract during the 2019 season, the 24-year-old is now signed through the 2023 campaign.
The 2016 second-round pick helped the Falcons reach the Super Bowl in his rookie season and made the Pro Bowl in 2017 when he led the team with 138 tackles. He played in just six games in 2018, spending time on injured reserve with a foot injury.
After signing defensive tackle Grady Jarrett to an extension Monday, the Falcons prioritized a new deal for Jones. The team is next expected to meet with superstar receiver Julio Jones, who has two years remaining on his contract.