ESPN reported the deal was worth $100 million, with $60 million guaranteed. That would make Brees the highest-paid player in NFL history.
"Congratulations are in order for our organization, our city, Drew and certainly for (General Manager) Mickey Loomis and his staff for all of the hard work put in to make this possible," said franchise owner Tom Benson. "Now we must turn our focus to getting ready for the start of training camp and to keeping with our goal of being the first team in NFL history to host and play in a Super Bowl."
Brees had said this week he would not report to training camp without a new contract. He was drafted by San Diego in the first round 11 years ago and signed with New Orleans as an unrestricted free agent in 2006.
He has completed 65.9 percent of his 5,479 passes for 40,742 yards and 281 touchdowns over 153 career starts. Brees has been selected to the Pro Bowl six times.
With Brees at the helm, New Orleans won the Super Bowl over Indianapolis at the end of the 2009 season and was voted the MVP of that game.
He is coming off a season in which he set NFL single-season records for completions (468) and passing yardage (5,476). He had 13 games in which he threw for at least 300 yards, another league record.