ESPN's Adam Schefter reported Wednesday the settlement came in coordination with a four-year, $72 million contract extension Barrett, who'd argued he should have been listed as a defensive end rather than a linebacker to receive a higher one-year salary under the tag, signed with the Bucs on Monday.
Barrett led the NFL with 19.5 sacks in 2019, which was his first year with Tampa Bay after spending his first four seasons with the Denver Broncos. He received the franchise tag last March.
The 28-year-old Colorado State product recorded 57 total tackles, eight sacks, three passes defended and two forced fumbles across 15 games in 2020. He added four more sacks during the Buccaneers' playoff run, which culminated with a triumph in Super Bowl LV last month.
Barrett explained during an appearance Tuesday on the Dan Patrick Show he didn't want to leave the Bucs and "did not get a better offer" than Tampa put on the table:
His decision to sign the new contract and the team's willingness to settle the grievance without the need for a hearing means the team can focus on the coming season.
Barrett will rejoin Jason Pierre-Paul, Devin White and Lavonte David to give the Buccaneers one of the league's best linebacker corps. It's a major reason, alongside the arrival of quarterback Tom Brady, the Bucs were able to capture the second championship in franchise history.
The Maryland native will head into the 2021 campaign with 41.5 sacks in 92 career regular-season games.