|Falcons coach Mike Smith is 33-15 in three seasons with the team. (Paul Abell/Associated Press)|
The sides have been quietly negotiating for a few weeks and agreed on many principles of a new deal, according to the source.
The team expects to announce the extension shortly because the deal is close to being finalized.
Smith signed a four-year contract worth between $8 million and $10 million with the Falcons in 2008, leaving his job as the Jacksonville Jaguars' defensive coordinator. He took over a struggling franchise but quickly turned it around, going 33-15 with two playoff berths in three seasons.