Pennington has agreed to terms on a one-year contract, and the deal is expected to be signed by Monday, a person familiar with the discussions told The Associated Press on Saturday. NFL.com's Steve Wyche reported Friday night that the deal would pay Pennington $4.2 million if he's traded and $5.75 million if he starts, according to a source familiar with the situation.
Pennington is recovering from a third operation on his throwing shoulder. Twice, he has returned from injuries to win NFL Comeback Player of the Year honors, most recently in 2008, when he led the Dolphins to their first playoff berth in seven years.
Pennington dislocated his shoulder during the third game last season at San Diego and required season-ending surgery. There was no muscle damage, and the repair wasn't as extensive as with his other operations.
Pennington was around the team late in the season, helped with game plans and has served as a mentor to Henne.
"I'm a loyal guy and I believe in this organization, and I enjoy this organization and this area," Pennington said late last season.
The Associated Press contributed to this report.