No dollar figure was disclosed.

The agreement was confirmed before Sunday's game against the Washington Redskins, and followed a Fox Sports report.

Payton is in his third season with the Saints, and his original deal ran through the 2009 season. The extension will keep him in New Orleans through 2012.

The (New Orleans) Times-Picayune reported Payton's original contract was believed to be worth $8 million annually.

"We're excited to have it done," General Manager Mickey Loomis told the newspaper.

Payton was coach of the year in 2006 after guiding the Saints to the NFC championship game.

The Saints fell to 1-1 this season after a 29-24 loss to the Redskins.