Peyton Manning has a new long-term deal in time to report to training camp, but he hasn't been cleared to practice.
Nonetheless, Colts owner Jim Irsay said Saturday that he was "thrilled" to give the only four-time MVP in league history a deal that likely will keep him in Indianapolis for the rest of his career.
Manning agreed to a five-year, $90 million deal that, according to Irsay, will pay his quarterback $69 million during the first three years.
Irsay described the contract as "cap friendly" on his Twitter page, and sources told NFL Network insider Michael Lombardi that the owner assured Manning that the Colts would be aggressive in free agency.
"Signing Peyton was a top priority for this organization and we are thrilled that the deal is complete," Irsay said in a statement released by the team Saturday. "We feel that it is a salary-cap friendly deal and it allows us more flexibility."
Irsay and Colts president Bill Polian are scheduled to discuss Manning's contract at a Sunday afternoon news conference.
The deal comes nearly five months after the team used the exclusive franchise tag to prevent Manning from negotiating with any other teams. Had Manning signed the one-year offer, he would have made $23.1 million this season.
By having the long-term deal done, Manning's salary-cap number will be reduced, allowing the team to sign more of its own free agents. The Colts already have re-signed two key veterans -- safety Melvin Bullitt and kicker Adam Vinatieri -- this week. They also lost linebacker Clint Session to the Jacksonville Jaguars in free agency.
However, Manning will not practice because he's continuing to rehabilitate from neck surgery he had in May. It was the second time since March 2010 that he had neck surgery.
The Colts announced Saturday that it will put the quarterback on the physically unable to perform list, preventing him from practicing until he is removed from it. Because it is the preseason, he could be removed from the list at any time and return to practice.
"There is every medical indication that he is progressing steadily," team neurosurgeon Dr. Hank Feuer said in a statement. "While he looks fine, he still has some rehabilitation to go. Recovery from disc surgery is unpredictable and it is not a medical concern that he is not ready at this time."
Manning has started all 227 regular-season and playoff games in his 14-year career, and the Colts repeatedly have said they expect the quarterback to be ready to start in the season opener against the Houston Texans.
Manning has completed 64.9 percent of his passes in his career, throwing for nearly 55,000 yards and 399 touchdowns. He has led the Colts to the playoffs 12 times, reaching two Super Bowls and winning one.
But as the contract negotiations dragged, Manning became more irritated with the pace.
On Friday night, Manning told The Indianapolis Star that he had instructed agent Tom Condon to complete the deal by Sunday at the latest.
And after months of Irsay promising to make Manning the highest-paid player in league history, surpassing the annual average salary of $18 million that Tom Brady agreed to in September, the quarterback said he didn't have to own that title.
On Saturday, the two sides finally came to terms on a deal that will continue to make Manning the highest-paid player in franchise with a caveat -- that the team can hopefully keep some of his teammates under contract, too.
The Associated Press contributed to this report.