Financial terms were not disclosed. Woodson said last month that he would consider retirement and hoped the team could work out a new contract for him. He made $3.3 million last season.
Woodson, 37, was the fourth overall pick in the 1998 NFL draft by Oakland, and returned to the team last season after spending seven seasons with the Green Bay Packers, helping that team win a Super Bowl championship in 2011.
Woodson is an eight-time Pro Bowler and was named the 2009 NFL Defensive Player of the Year.
2014 NFL Free Agent Tracker, Grades Last season, Woodson recorded 97 total tackles, two sacks, and three forced fumbles. For his career, Woodson has over 1,000 tackles with 56 interceptions and 19 sacks.