Peyton Manning, Broncos agree to five-year, $96 million deal

Peyton Manning and the Denver Broncos have agreed to terms on a five-year contract, a league source told NFL Network's Michael Lombardi on Tuesday.

Manning's contract is worth $96 million, a league source told NFL Network's Albert Breer, but NFL Network insider Jason La Canfora reports Manning's contract essentially boils down to a series of one-year deals.

The deal includes $18 million guaranteed once it is signed, league sources told La Canfora, and there remains ongoing discussion about injury language in the contract, according to sources with knowledge of the situation.

If Manning passes a physical in March 2013 he'll be guaranteed $40 million over the next two seasons. There is currently an injury waiver in place, however, that should Manning injure his neck in 2013, the Broncos can void the contract at that point and 2014 would not be guaranteed, sources told La Canfora. Those sources also said there is ongoing dialogue about that injury waiver, and whether it should apply to both years, and until Manning signs the deal that is not locked in.

Much of the language and final details in the contract can remain on the table until the deal actually is signed, according to La Canfora. None of this is big enough to preclude a deal, however, the final language on the injury waiver still could change somewhat between now and the actual signing.

Cash strapped in recent years, the Broncos put nothing up front, according to Lombardi. Manning's $18 million will be paid in the form of guaranteed base salary -- which would come in the former of 17 game checks, each worth a sliver of $1 million each.

The Broncos have tentatively scheduled a Tuesday news conference at 3 p.m. ET in the team meeting room of the Broncos’ training facility, according to a team release. The news conference can be viewed live on NFL Network, and it will be streamed live on NFL.com.

The news of Manning's decision to sign with Denver sent shock waves throughout the league and wasn't lost on the four-time NFL MVP's former team.

"I congratulate Peyton as he heads to a tremendous organization in the Denver Broncos," Indianapolis Colts owner Jim Irsay said in a statement Tuesday. "We wish him nothing but the best as he continues his Hall of Fame career."

The Broncos already have looked into a trade of quarterback Tim Tebow and currently are looking for a partner, a source told Breer on Monday. Five teams already have looked into potential trade for Tebow, a league source told Lombardi on Tuesday.

Broncos wide receiver Eric Decker, who had 44 receptions for 612 yards and eight touchdowns last season, told NFL Network insider Jason La Canfora on Monday that he expects the offense to change with Manning now under center and that the quarterback would run the system from the line of scrimmage.

"More of the offense will be in Peyton's hands," Decker said.

The Broncos were one of three finalists for the four-time NFL MVP, along with the Tennessee Titans and the San Francisco 49ers. The Arizona Cardinals and Miami Dolphins also were in the hunt and received meetings with Manning but ultimately didn't make the final three.