Schefter also reports that the Jets have signed Sheppard to a four-year contract extension worth $27.2 million. The contract will begin after this upcoming season and will include a $10 million signing bonus next March.
Sheppard, 27, is a former first-round pick out of Florida in 2004 and '06, but saw his role reduced last season as he started only three games with Asante Samuel and Sheldon Brown in the starting lineup.
"I am excited to be joining the Jets organization," Sheppard said in a statement issued by the team. "It is a fresh new start, a new coach and a new system. I am looking forward to getting back to playing top-notch football and bringing a winning attitude with me."
When the Eagles acquired Samuel from New England last offseason, it appeared to pave the way for Sheppard to be traded. He also wanted a new contract, but Philadelphia didn't want to redo it -- and found no suitable trade offers.
After giving up three touchdowns against Arizona on Thanksgiving, Sheppard was dropped from No. 3 to No. 5 on the depth chart. He then played mostly on special teams the rest of the season.
Still, Sheppard has a knack for making big plays. He has returned three of his 18 career interceptions for touchdowns and was the first player in NFL history with two such returns of more than 100 yards.
The deal was completed Saturday after New York re-signed guard Brandon Moore earlier in the day and signed former Baltimore linebacker Bart Scott on Friday.
Information from the Associated Press was included in this report