Lindsey Thiry of ESPN first reported the news.
The quarterback's contract created some challenges for the Rams financially, as they entered Friday ranked 31st in total cap space, per Spotrac.
Los Angeles released running back Todd Gurley last month before he would've earned $10.5 million guaranteed, while linebacker Clay Matthews and cornerback Nickell Robey-Coleman were also released. Additionally, the team traded high-priced receiver Brandin Cooks to the Houston Texans.
Restructuring Goff's deal enabled the Rams to officially sign free agents Leonard Floyd and A'Shawn Robinson.
The quarterback still has a lot of work to do to live up to his deal. The 25-year-old earned back-to-back Pro Bowl selections between 2017 and 2018, leading his team to the Super Bowl after the 2018 campaign.
Goff struggled in 2019 with a quarterback rating of 86.5, down from 101.1 a year earlier. The Rams fell with him, missing the playoffs after going 13-3 in 2018.
Los Angeles will look to bounce back in 2020 with a rebuilt roster around the young quarterback.