The person spoke to The Associated Press on condition of anonymity on Tuesday because the agreement has not been announced. The person said $27 million is guaranteed in the first year.
Brees, who turned 39 in January, was due to become a free agent on Wednesday. But he has said he wanted to finish his career in New Orleans, where he has played since 2006, won a Super Bowl and led what has been one of the most productive offenses in the NFL since he and coach Sean Payton arrived.
Last season, Brees completed an NFL-record 72 percent of his passes for 4,334 yards and 23 touchdowns against eight interceptions. He ranked fourth in the NFL in yards passing and the Saints ranked second in the NFL in total offense.