The extension is for four years and $87.6 million. The deal includes a $31 million signing bonus and an estimated $60 million in guaranteed money. Wilson confirmed the four year extension on his Twitter account.
Wilson has one Super Bowl win and has thrown for 72 touchdowns with 26 interceptions in his three-year career.
That is only one million annually less than what Packers quarterback Aaron Rodgers is earning and he is the highest-paid player at his position in the NFL.
Wilson and his team remain at an impasse in contract negotiations with training camp set to open Friday.
Wilson is scheduled to make $1.54 million this season. The two sides reportedly won't negotiate past the start of training camp. The deadline of the July 30 start of camp means that talks should accelerate over the next two weeks.
"The rest will work out. The contract will work itself out. I'm excited about it and excited to hopefully be a Seattle Seahawk for a really, really long time," Wilson said during a football camp. "So, that's the goal."
Wilson is slated to play out the final year of his rookie contract in 2015, making $1.54 million, a figure wildly below market value for a player who has been to back-to-back Super Bowls.
Wilson confirmed that he has taken out an insurance policy in case he gets badly hurt during the final year of his rookie deal that will pay him a comparatively meager $1.5 million.
"That's just being smart," Wilson told the Tacoma News Tribune. "If I do have to play this season (without a new contract), that's just being smart. That's all that is, really. I think that's the right thing to do."
Wilson added that negotiations that extend into the season will not distract him from maximizing his performance. Pete Carroll can certainly see the possibility of talks taking place during the year.
"I don't care how long we keep working," he said. "Whatever it takes, to do the right thing. ... That's why we are working."
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