The Redskins acquired the 6-foot, 184-pound Lloyd on March 12 in a deal with San Francisco. The 49ers got a 2006 third-round draft choice and a 2007 fourth-round pick for the three-year veteran.
In 45 games with San Francisco, he made 105 receptions for 1,510 yards and 13 touchdowns. In 2005, he made 48 catches for 733 yards and five scores.
The 49ers took Lloyd in the fourth round of the 2003 draft out of Illinois.
Terms of the new deal were not disclosed, but Washington began negotiations with the Redskins on the contract extension quickly after the trade.