According to ESPN's Adam Schefter, Holmes has agreed to restructure his current contract to avoid being a salary cap casualty, and will remain with the Jets during the 2013 season.
The news comes after an earlier report from Brian Bassett of TheJetsBlog.com, which stated that the Jets and Holmes were both far apart on a potential agreement:
After posting his most successful season as a pro with the Pittsburgh Steelers in 2009, Holmes was traded to the Jets later that offseason for a fifth-round draft pick. Since then, his numbers and production have flat-lined with the Jets, culminating with last season's frustrating stint battling injuries and poor quarterback play.
Holmes had over 1,200 yards receiving and five touchdowns during his final season in Pittsburgh, and was one of the favorite targets of QB Ben Roethlisberger in the process. His MVP-caliber catch against the Arizona Cardinals in Super Bowl XLIII was one of the best plays in NFL history, leading a team like the Jets to believe he was worth every bit of a fifth-round pick.
Since that 2009 campaign, however, he Holmes has totaled just over 1,600 yards in three seasons with New York. In 2012 he was limited to just four games after a Lisfranc injury forced him out of the lineup in late September and landed him on injured reserve for the rest of the season (via Yahoo! Sports).
Although Holmes has been the primary red-zone target of QB Mark Sanchez (15 receiving touchdowns), he hasn't been fully worth the five-year, $45 million deal he signed in 2011.
That made the Jets' decision to ask Holmes to restructure his deal a few days ago (via ESPN) quite simple.
However, the Jets would also be razor thin at the WR position without him, something they quite painfully discovered last year, as the Stephen Hill/Jeremy Kerley/Chaz Schilens experiment wasn't exactly the best WR trio in football.
In any event, Holmes will remain a Jet for the 2013 season. While we're fairly confident that he will reclaim his role in the starting lineup, whom he catches passes from is another story entirely.