Jets nail down Sanchez; exit Manning derby

NEW YORK, March 10 (UPI) -- The New York Jets apparently opted out of the Peyton Manning sweepstakes by signing quarterback Mark Sanchez to a new contract.

The Jets announced Friday night they had agreed to a three-year contract extension that will keep Sanchez in the Jets' organization for another five seasons.

"Mark is a guy we identified that we wanted to sign to an extension," General Manager Mike Tannenbaum told reporters. "It started several weeks ago. Mark's our starter and we're excited about 2012."

Terms of the deal were not released, but the New York Daily News said Saturday the extension was worth $40.5 million with about half of it guaranteed.

There had been media speculation that the Jets were on Manning's list of potential new employers, however signing Sanchez would appear to scrub the idea of him playing in the same city as his brother, Eli, who quarterbacks the New York Giants.

"Peyton is a future Hall of Famer," said Tannenbaum. "We looked into it and had internal discussions, but we continued to talk with Mark's representatives … and found a landing spot."

Sanchez led the Jets to an 8-8 record last season under new offensive coordinator Tony Sparano. He posted career bests with 3,474 passing yards and 26 touchdowns.