League sources told ESPN, NFL Media and the Dallas Morning News on Monday that Prescott is signing a four-year, $160 million deal with the Cowboys. According to the outlets, Prescott's signing bonus is $66 million, the highest in league history.
The first three years of the new contract average $42 million per year, ESPN reported. The deal has a maximum value of $164 million, including $126 million in guaranteed money.
The Cowboys announced the agreement with Prescott, but the franchise didn't disclose terms of the deal. On Tuesday, Dallas will reportedly put the franchise tag on Prescott as a procedural matter.
The team said it will hold a news conference Wednesday to release further details of Prescott's deal.
The 27-year-old Prescott is coming off a significant lower leg injury suffered in the Cowboys' Week 5 win over the New York Giants in October. In that game, Prescott sustained a compound fracture and dislocation of his right ankle.
Despite the severity of the injury, Prescott is expected to make a full recovery during the team's 2021 off-season program.
Prescott, who played under the franchise tag in 2020, threw for 1,856 yards with nine touchdowns and four interceptions in five games last season.
The Cowboys selected Prescott in the fourth round of the 2016 NFL Draft out of Mississippi State. He has posted a 42-27 record with 17,364 passing yards, 106 touchdowns and 40 interceptions across five seasons in Dallas.