The deal contains $111m in guarantees and will keep the quarterback with the Texans through the 2025 season.
More Glory! 🙏🏾 HOUSTON!!!!!!!!!!!! pic.twitter.com/u2D2o1ttIQ— Deshaun Watson (@deshaunwatson) September 5, 2020
According to ESPN's Adam Schefter, Watson will make an average of $39m in base salary over the next four years, making him the highest-paid player in the NFL in that timeframe.
Watson was selected with the 12th overall pick in the 2017 NFL Draft and has blossomed into one of the league's premier young quarterbacks.
After an exciting rookie season curtailed by injury, Watson has led the Texans to successive AFC South titles.
They reached the Divisional Round of the postseason last year and led the eventual Super Bowl-champion Chiefs 24-0 before being undone by an incredible comeback in a 51-31 loss.
Watson has thrown for 9,716 yards, 71 touchdowns and 29 interceptions in three seasons in the NFL. He also has 1,233 yards and six touchdowns rushing as well as one receiving score.
He and the Texans will look for revenge against the Chiefs and quarterback Patrick Mahomes, who signed a 10-year, $501m extension this offseason, in the NFL season-opener at Arrowhead Stadium on Thursday.