Length of contract and financial details were not disclosed, but multiple media outlets report that Hilton's deal is for five years and $65 million, with $39 million guaranteed.
Hilton's contract was set to expire at the end of the season and he was scheduled to make $1.54 million in 2015.
“It's a great day for the Indianapolis Colts, T.Y. Hilton and his family,” Colts general manager Ryan Grigson. “We're extremely happy as an organization to ensure that T.Y. will continue to be a part of our journey for many years to come. His daily excellence on and off the field is a shining example of an individual striving for greatness and what it truly means to be a Colt.”
Colts owner Jim Irsay had said during this offseason that the team hoped to lock Hilton up with a long-term contract extension before he possibly hit the free-agent market in 2016.
Hilton, 25, was quarterback Andrew Luck's top target last season, catching 82 passes for a career-high 1,345 yards and seven touchdowns in earning his first trip to the Pro Bowl.
Since being selected in the third round of the 2012 NFL draft, Hilton has 214 receptions for 3,289 yards and 19 touchdowns, setting team records for most receptions, receiving yards and 100-yard receiving games in a player's first three seasons.
He is only the third Colts receiver to have 1,000 receiving yards or more in back-to-back seasons, after having 82 catches for 1,083 yards during his breakout season of 2013.
- Scooby Axson