That gives Mahomes a raise to just over $51 million a year, moving him back into the top four at the position.
Schefter says the two sides will revisit the deal again in 2026 when more quarterbacks inevitably pass Mahomes.
Mahomes signed a 10-year, $450 million deal in 2020 that is still a record in total value for any deal but gave the Chiefs valuable flexibility.
At the time, it was $5 million a year ahead of the next highest-paid quarterback. Before this deal, it was $10 million behind Bengals QB Joe Burrow, whose recent extension at $55 million a year reset the market for the fourth time this offseason.
Mahomes, 28, is a former first-round pick of the Chiefs back in 2017. He was in the final year of a four-year, $16.4 million contract when the Chiefs picked up his fifth-year option worth $24,837,000 for the 2021 season.
However, Mahomes agreed to a 10-year extension with the Chiefs worth $503 million a few months later.
In 2023, Mahomes has appeared in two games for the Chiefs and completed 62.5 percent of his pass attempts for 531 yards, four touchdowns and two interceptions to go along with 75 rushing yards.