Wilson signed the deal Tuesday, the same day the team tendered one-year contracts to retain the rights of three potential free agents: safety Donte Whitner, linebacker Paul Posluszny and tight end Scott Chandler.
"I'm definitely relieved," Wilson told The Associated Press by phone shortly after traveling to Buffalo to sign his contract. "I have a home here, and there was so much uncertainty out there with 500 free agents, it was a matter of both us finding a common ground we're both comfortable with."
Wilson also doubles as the Bills' NFL Players Association representative. Knowing where he'll play next season removes one bit uncertainty for the five-year pro as the league and union attempt to negotiate a new collective bargaining agreement before it expires Thursday night.
Wilson negotiated his contract after he received a one-year tender from the Bills last week. He has proven to be a valuable role player, who has 26 starts in 60 games over the past four years.
The Bills also signed offensive lineman Mansfield Wrotto to a contract extension, terms of which weren't disclosed. Wrotto, who made seven starts at right tackle, told the team's official website that he'd likely move to guard in 2011.
Though tendered contracts, the status of Whitner, Posluszny and Chandler remains uncertain as it's unclear whether they will become restricted or unrestricted free agents under a new CBA.
Posluszny told The AP he was encouraged to know he's still wanted by the Bills after formally receiving the contract offer by mail last week. The next step for him will be negotiating a long-term deal.
"As a guy who wants to be part of the organization, this is certainly a positive step in the right direction," Posluszny said Tuesday. "I want to be a Buffalo Bill for a long time."
Posluszny, a 2007 second-round draft pick, completed a four-year contract. After missing much of his rookie season with a broken arm, he has been a three-year starter who led the team with 151 tackles last season.
Because of Posluszny's status as a fourth-year pro, the Bills were restricted in negotiating a long-term deal to re-sign him last year.
Now he'll sit tight and wait.
"That's the hard part," Posluszny said from his home outside of Pittsburgh. "The only thing you can do is train as hard as you can, so when we're ready to go back to work we can."
Whitner, Buffalo's 2006 first-round pick, completed a five-year contract last season. After initially expressing interest to re-sign with the Bills, Whitner grew unhappy with the team's offer and broke off talks in December while saying he was preparing to test free agency.
Whitner was so intent on leaving Buffalo that he had his locker cleaned out and wasn't available for interviews one day after a 38-7 season-ending loss to the New York Jets.
Whitner is a five-year starter who finished second on the team with 138 tackles last season. Whitner added one interception, forced a fumble and was credited with a half-sack on a defense that finished last in the NFL against the run.
The status of numerous other Bills players eligible for tender offers -- including backup cornerback Ashton Youboty and third-string quarterback Brian Brohm -- is uncertain.
Linebacker Keith Ellison's agent, Christopher Ellison, said he doesn't expect the Bills to tender the five-year pro a contract.
The Associated Press contributed to this report.