John Elway, the team’s executive vice president, announced the news in a tweet Monday that was reported by the Denver Post.
Terms were not available, but Prater’s agent, Frank Bauer, had been seeking a multiyear deal. Prater did not participate in the team’s offseason program after receiving the team’s franchise tag of $2.654 million.
“Matt has developed into one of the NFL's elite kickers and is a big part of our team,” Elway said in the tweet.
According to the Post, the Broncos had offered Prater more than $3 million per year.
The Broncos report to training camp July 25.