According to Adam Schefter of ESPN, the defensive end will make $45 million over three years in the new deal.
The 29-year-old was entering the final season of a six-year deal he signed back in 2013. He skipped the team's voluntary organized team activities in May, but he said he wasn't concerned about his contract situation.
Dunlap told Scott Eisberg of WCIV in June:
"You just go out here and you play football. The film that I put out there already speaks for itself, I feel like I've already earned the respect of my peers. I've been fortunate enough to be an All-Star, being in the Pro Bowl. The film speaks for itself. I'm just going to continue to put good film out there and let whatever happens happen."
The Bengals decided to take care of their star defensive end rather than let him test free agency. Dunlap has been an integral part of their defense since being drafted in 2010.
Since 2013, Dunlap has never recorded fewer than 7.5 sacks in a season. He's also a disruptive force when he doesn't tackle the quarterback with 42 career passes defensed, including a team-high 15 in 2016, and he excels at creating pressure.
As the Bengals look to get back on track after back-to-back losing seasons in 2016-17, Dunlap has proved himself to be vital to their success. His ability to get in the opposing backfield is a huge asset in a league that depends on quarterback play.
By taking care of Dunlap now, Cincinnati can turn its attention to taking down the Pittsburgh Steelers in the AFC North in 2018.