Paul, 25, caught 39 passes for 507 yards and one touchdown last season, appearing in all 16 games and frequently filling in for the injured Jordan Reed.
The Redskins selected Paul out of Nebraska in the fifth round of the 2011 NFL draft. Schefter reported Paul's new contract could top out at just under $10 million in earnings.
A converted wide receiver, Paul has caught 53 passes for 735 yards and two touchdowns in his four seasons.
- Jeremy Woo