Cowboys, offensive tackle Terence Steele agree on $86.8 million extension

The Dallas Cowboys and right tackle Terence Steele agreed Sunday on an $86.8 million, five-year extension, a huge payday for an undrafted player coming off an ACL injury.

Steele will get $50 million guaranteed in a contract with a $17 million annual average, which puts the 26-year-old in the top 10 among right tackles. The deal could be worth up to $91.8 million.

ESPN first reported the agreement. The Cowboys signed Steele to a second-round tender at $4.3 million as a restricted free agent after his three-year rookie contract expired.

Steele was cleared for most of training camp despite tearing the ACL in his left knee 13 games into last season.

Undrafted out of Texas Tech, Steele started 14 games as a rookie in 2020 when he replaced an injured La'el Collins. He has started 40 of 45 games.

The deal with Steele comes about three weeks after right guard Zack Martin agreed to a $36.9 million, two-year contract to give the six-time All-Pro a raise and end a camp holdout.

Dallas also signed cornerback Trevon Diggs to a $97 million, five-year extension at the start of camp.

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