Seattle converted the $100,000 Diggs had in per-game roster bonuses into salary and gave him $5.05 million of his salary as a signing bonus, per Yates.
The Seahawks also added a void year to free up some cap space, as Diggs was entering the final year of his contract.
Diggs had held out of practice while seeking a new deal earlier this summer, but recently returned and was set to play in Week 1.
Diggs, 28, is a former sixth-round pick of the Lions back in 2015. He was entering the final year of his four-year, $2.395 million contract and in line to be an unrestricted free agent when he signed a three-year, $20.4 million extension in 2018.
The Lions traded Diggs midseason in 2019, however, to the Seahawks, swapping a seventh for a fifth-round pick in 2021.
In 2020, Diggs appeared in all 16 games for the Seahawks and recorded 64 total tackles with no sacks, five interceptions and 10 pass defenses. Pro Football Focus had him rated as the No. 52 safety out of 94 qualifying players.