NFL Network's Ian Rapoport and Yahoo Sports' Terez A. Paylor reported financial details about the extension:
"I'm grateful for the opportunity to continue my playing career here in Kansas City," Hill said. "Kansas City is my home, and I appreciate the love and support from Clark Hunt, Coach Reid and Brett Veach along with my coaches and teammates. To Chiefs Kingdom, you're the best fans in the world."
Hill has been one of the NFL's best bargains for the previous three seasons, playing on a rookie deal worth a total of $2,586,220 over four years after being a fifth-round draft pick in 2016.
After a promising rookie campaign in 2016 with 860 yards from scrimmage and nine touchdowns, Hill has developed into one of the NFL's most dynamic playmakers over the past two seasons. He led the team with 1,183 receiving yards in 2017.
The change in quarterback from Alex Smith to Patrick Mahomes in 2018 unlocked even more of Hill's skill for running past opposing defenders. The 25-year-old led the NFL with 15 yards per touch, finished fourth with 1,479 receiving yards and had 12 touchdown receptions.
Per Pro Football Focus, Hill had 754 receiving yards on passes that traveled at least 20 yards past the line of scrimmage.
The Chiefs had financial flexibility coming into the offseason with $15.049 million in available cap space. Mahomes isn't eligible for an extension until after the 2019 season, and ESPN.com's Adam Schefter reported the deal could become the NFL's first $200 million deal.
Hill's status was an ongoing topic of discussion during the offseason following a child-abuse investigation involving the Chiefs star, his fiancee, Crystal Espinal, and the couple's three-year-old son.
Overland Park police were called to Hill's home twice in March, once to investigate a report of child abuse or neglect and another to investigate alleged battery involving a juvenile.
In April, an audio clip featuring Hill and Espinal was released in which they were discussing a broken arm their son suffered.
In the clip, Espinal asks Hill why their son said "Daddy did it" in reference to his arm. Hill also tells Espinal, "You need to be terrified of me, too, bitch."
Prosecutors reopened their case against Hill at that time, but they announced in June the investigation was inactive.
Per Sports Radio 810 WHB host Kevin Kietzman, Hill and Espinal were cleared of any involvement in their son's broken arm. Investigators and medical personnel determined the injury was the result of bracing for a fall.
Hill avoided a suspension from the NFL.
With Mahomes' contract looming, the Chiefs were best served taking action on Hill's deal now so they have a better idea of what their cap will look like moving forward.
Head coach Andy Reid and general manager Brett Veach have built one of the best offensive units in the NFL. The Chiefs led the league with 425.6 yards and 35.3 points per game in 2018 en route to winning the AFC West for the third straight season.
Hill's versatility as a wide receiver and special teams player has made him one of the best playmakers in the NFL. His performance on the field was deserving of a long-term contract extension, and the Chiefs were able to make it happen.