The team made the announcement Friday, and terms were not disclosed.
The 25-year-old Paul set career highs for receptions (39) and receiving yards (507) in 2014. Starting in place of the injured Jordan Reed, Paul caught eight passes for 99 yards and a touchdown in Washington's Week 2 win over Jacksonville.
Paul has played in 60 games (starting 17) in four seasons with Redskins, totaling 53 catches for 735 yards and two receiving touchdowns.
Drafted as a wide receiver in the fifth round (155th overall) in 2011 out of Nebraska, Paul was converted to tight end after his rookie season.
He was slated to become an unrestricted free agent next week.