The deal includes escalators that can bring the total amount to $40 million, according to a source with knowledge of the situation. The Ravens later confirmed Rice's signing, via a team release.
"This is another example of Steve Bisciotti's commitment to the team and to our fans to retain our core players," Ravens general manager Ozzie Newsome said, via the team's official website. "(Rice's) production on the field speaks for itself, and his leadership in the locker room is outstanding."
Rice announced his "return" via Twitter.
Baltimore I'm back well I never left lol #Ravensâ Ray Rice (@RayRice27) July 16, 2012
News of Rice's deal came down just before Monday's 4 p.m. ET deadline for franchise-tagged players to receive long-term deals. Rice, who had yet to sign his one-year, $7.742 million franchise tender, said Saturday he was "optimistic" a deal would be done.
Rice, 25, posted career-bests of 1,364 rushing yards and 12 touchdowns (third in the NFL) in 2011. The two-time Pro Bowl selection has rushed for 4,377 yards and 24 TDs for his career.