Incognito indicated via his Twitter account Tuesday that he had agreed to a three-year deal.
Who's ready for 3 more years of DOMINATION in Buffalo!!!! @buffalobills
— Richie Incognito (@68INCOGNITO) March 8, 2016
A source told ESPN that Buffalo's final offer, made Monday, was three years for $15.75 million. It wasn't immediately known if that is the deal agreed upon Tuesday by the two sides.
Incognito, 32, revived his NFL career in Buffalo last season after spending the entire 2014 season out of football.
In a conference call with reporters, he acknowledged he took less money than he could have received elsewhere.
"I went from a guy nobody wanted to getting redeemed by Buffalo, and I owe them a lot,'' Incognito said. "You can't put a price tag on that. They believe in me, and I believe in them. I'm real excited about where we are headed.''
Incognito said contract talks began a few weeks ago before hitting a snag on terms last week. He said as many as seven teams expressed interest before he decided to reach a deal with the Bills.
"We definitely took a discount to stay in Buffalo,'' he said. "I think that's what made negotiations so hot and heavy there for a second because we knew what we had on the outside. But it was important to me to come back. They saved me.''
The Bills signed Incognito to a one-year deal last February and immediately inserted him into their starting lineup at left guard, where he started all 16 games last season. Pro Football Focus graded Incognito as the NFL's second-best guard behind only Baltimore's Marshal Yanda.
The veteran guard had expressed a desire to remain with the Bills.
"It's definitely important for me to come back to Buffalo," Incognito said Jan 3. "I loved it here. I'm very appreciative for the opportunity to come up here and play. From the get-go, [owners] Kim and Terry Pegula, [general manager] Doug Whaley, [coach] Rex Ryan and my teammates have accepted me with open arms and made me feel like I'm part of the team. So it's a big priority for me to come back."
Initially selected as an alternate to the Pro Bowl, Incognito was later named as a replacement for Arizona Cardinals guard Mike Iupati. It was Incognito's second Pro Bowl nod of his career; his first came in 2012.
Incognito was suspended by the Miami Dolphins for the final eight games of the 2013 season at the outbreak of a bullying scandal involving teammate and former NFL offensive tackle Jonathan Martin. The NFL commissioned attorney Ted Wells to investigate Martin's claims, and Incognito was released by the Dolphins in February 2014 following the release of Wells' 144-page report.
The Associated Press contributed to this report.