The New Orleans Saints announced Saturday that coach Sean Payton and the team have an agreement in principle to a multi-year contract extension.
The deal is for five years, according to multiple reports.
ESPN.com reported that the contract will pay Payton $8 million per year, making him the highest-paid coach in the NFL. The agreement still must pass league approval, according to reports.
"I am pleased that Sean Payton will be our head coach for a long time," Saints owner Tom Benson said in a statement. "Now we can focus our attention on building on the winning tradition with the Saints that Sean has played such a large role in."
Payton's contract was due to expire at the end of the season and NFL Commissioner Roger Goodell rejected a contract extension agreed to in 2011 because it contained a clause that would allow Payton to leave if general manager Mickey Loomis was suspended or left the Saints.
ESPN cited a source close to the negotiations that the language has been clarified and approval from the league is expected.
Payton is serving a one-year suspension for his role in the Saints' "Bountygate" scandal. He is eligible for reinstatement on Feb. 4, a day after the Super Bowl.
There were rumors that Payton would be a potential candidate to coach the Dallas Cowboys should Jason Garrett not be retained.
Payton worked on the Cowboys' staff under former head coach Bill Parcells and moved his family back to the Dallas area. However, Garrett's job is believed to be safe.
Payton has led the Saints to three NFC South titles and four postseason appearances since being hired in 2006, including two NFC Championship game appearances and a win in Super Bowl XLIV.