The 33-year-old moved to Denver from the Seattle Seahawks ahead of the 2022 season, with the Broncos parting with three players – two first-round picks and two second-round picks – to land the Super Bowl-winning quarterback.
Wilson penned a two-year deal with the Broncos upon his arrival but could now stay with the team into his 40s, with an extension tying him down for a total of seven seasons.
Widespread reports have confirmed the news, with the deal worth $245million and $165m guaranteed.
The move also serves as further evidence of the quarterback market skyrocketing, with Aaron Rodgers' recent extension with the Packers at $50m setting the bar.
Wilson will begin his career with the Broncos in familiar circumstances as Denver travel to face Seattle on the west coast on September 13.
During his time with Seattle, Wilson led the Seahawks to back-to-back Super Bowl appearances, winning Super Bowl XLVIII against the Broncos at the MetLife Stadium in New Jersey.
He has also been a Pro Bowler in all but one of his 10 seasons in the NFL and should hit 300 career touchdowns with the Broncos, holding 292 ahead of the 2022 season.