The Kansas City Chiefs have signed wide receiver Sammy Watkins to a new one-year deal.

Watkins was not a free agent but there was speculation over his future with the team with him due to count $21million against the salary cap in the final year of his previous contract.

However, the Chiefs and Watkins have agreed to a restructure that will keep him with the Super Bowl champions while giving them a much-needed cap saving of around $5m.

Watkins, 26, can earn up to $16m in the terms of his new deal, though his base salary has been reduced from $13.75m to $9m, with $7m available to him in incentives.

He will count $16m against the cap with his new deal, a figure which also includes $7m from his original signing bonus.

Confirming the deal on Twitter, Watkins posted: "I'm back KC LETS GET IT..! #RUNITBACKTOUR".

Watkins played a crucial role in the Chiefs' Super Bowl LIV triumph last season, catching 14 of his 18 targets in the postseason for 288 yards and a touchdown.

His most important contribution came on a 38-yard catch in the fourth quarter of the Super Bowl, which set up Damien Williams' go-ahead touchdown in their 31-20 comeback win over the San Francisco 49ers.