The 38-year-old pass rusher will return to the Carolina Panthers on a one-year contract, the team announced.
Joe Person of the Charlotte Observer first reported the news.
NFL Network's Tom Pelissero reported that the deal is worth $5 million.
Peppers will enter his 17th NFL season with 154.5 career sacks, fourth-most all time, and just 5.5 behind third-place Hall of Famer Kevin Green.
Peppers should continue to get spot rest in 2018, but provides the Panthers with a proved pass-rusher to help bridge the gap as Carolina looks to get younger on the edge.