According to ESPN's Adam Schefter, the $42 million deal will pay Peters $32 million in guaranteed money and $20.5 million in the first year.
The Ravens acquired Peters from the Los Angeles Rams in October for linebacker Kenny Young and a 2020 fifth-round draft pick. Since the trade, Peters has registered 38 tackles, 10 passes defended, three interceptions and two pick-sixes in nine games en route to his third career Pro Bowl nod.
Overall, Peters has five interceptions and three pick-sixes this season, the latter of which leads the NFL and represents a career high.
Ever since he entered the NFL as a first-round pick of the Kansas City Chiefs out of Washington in 2015, Peters has been viewed as an all-or-nothing corner. He has a penchant for getting beat on big plays at times since he likes to gamble and go for big plays in his own right.
That philosophy plays dividends more often than not, as Peters has 27 interceptions in five NFL seasons to go along with three Pro Bowl selections and one first-team All-Pro nod.
Baltimore seems to be the best fit for Peters yet since there is no pressure on him to be the No. 1 guy with Marlon Humphrey, Brandon Carr and Jimmy Smith combining with him to form arguably the best cornerback group in the NFL.
Peters has played a big role in the Ravens owning an NFL-best 13-2 record and the No. 7 pass defense in the NFL. Baltimore has also allowed just 15 touchdown passes, which is third in the league.
Since Smith is a free agent at the end of the season and the Ravens have a club option that can make Carr a free agent, re-signing Peters is an important move that helps keep together a quality cornerback duo in Peters and Humphrey.
The contract gives Peters some security, but it also ensures that he can become a free agent again at the age of 29 if he so chooses, which means another big contract may still be in his future.