The wait is finally over for Dak Prescott.
The deal will be structured as a six-year contract, automatically voiding after Year 4 to help Dallas spread out Prescott's cap hits, Schefter adds.
The Cowboys will still place the franchise tag on Prescott as a procedural matter, Schefter reports. Although the tag's original value is estimated to be $37.7 million, the signal-caller's salary-cap number for the 2021 season will be $22.2 million, freeing up $15.5 million in salary-cap space for Dallas.
Prescott's new $40-million average annual salary ranks second in NFL history, behind only Kansas City Chiefs quarterback Patrick Mahomes ($45 million).
Prescott and the Cowboys have been engaged in contract talks since the quarterback's rookie deal expired after the 2019 season. The two sides failed to reach an agreement on a long-term extension last offseason, forcing the 27-year-old to play on the franchise tag in 2020.
His numbers have improved since entering the NFL as a fourth-round pick in 2016. The two-time Pro Bowler racked up career highs with 4,902 passing yards and 30 touchdowns in 2019.
He was completing a career-high 68% of his pass attempts while throwing for a league-leading 371.2 yards per game in 2020 before suffering a season-ending ankle injury in Week 5.
Prescott has posted a 42-27 record as a starter, but Dallas has made the postseason just twice since 2016. The Mississippi State product is 1-2 in the playoffs.