Reid, 58, has one season remaining on the five-year, $37.5 million deal he signed with the Chiefs prior to the 2013 campaign. He is scheduled to make $7.5 million in 2017.
Reid has posted a 43-21 regular-season record for Kansas City and guided this season's squad to the AFC West title. He was won 11 or more games in three of his four seasons with the Chiefs.
In 18 overall seasons as a NFL head coach, Reid has a 173-114-1 record. He spent 14 seasons with the Philadelphia Eagles from 1999-2012.
Kansas City could be in danger of losing general manager John Dorsey, who is in the final season of his four-year deal. He joined the Chiefs at the same time as Reid.
Speculation persists that Dorsey will be a candidate for the Green Bay Packers' general manager job should Ted Thompson decide to retire. Dorsey worked for Green Bay from 2000-12 before taking the Chiefs' GM post.