The Broncos agreed to a five-year contract with free-agent offensive tackle Russell Okungon Thursday. Denver is now expected to trade offensive tackle Ryan Clady in a corresponding move, sources told ESPN's Adam Schefter.
Terms of Okung's deal weren't announced by the Broncos, but a source told ESPN's Josina Anderson that the contract is worth an average of $10.6 million per season ($11.2 million maximum if he reaches incentives).
He will earn $5 million in the first year of the deal with incentives that could push the total to $8 million. The Broncos have a team option after the first season that must be exercised by the start of the 2017 league year. If the option is exercised, Okung would be paid $48 million, with $20.5 million guaranteed, for the remainder of the contract.
"It's a bit intricate, but I thought it was the best deal for me moving forward," he said. "Denver is the place I want to be for the long haul."
Okung, who comes to the Broncos after six seasons with the Seattle Seahawks, was the first pick (sixth overall) of the Pete Carroll/John Schneider era back in 2010.
"I'm very familiar with the scheme that they run," he said. "I've been running the zone scheme since I've been a rookie. I understand all the concepts and just everything that they have here. I hope I have something great to offer the team. Just in my understanding of the scheme and my level of play as well, too. I know these guys are a championship-caliber team, and I'm glad I could be a part of it."
Clady, 29, tore his left ACL last May and missed the entire 2015 season. The eighth-year pro is due $9.5 million next season and $10 million in 2017. The five-year, $52.5 million contract he signed in 2013 was the largest ever for a Broncos offensive lineman.
Before Okung's scheduled visit to the Broncos this week, the Broncos had been talking to Clady about reworking his deal to lower the salary-cap charge ($10.1 million) for the coming season but have been unable to come to an agreement.
Clady, a four-time Pro Bowler, underwent knee surgery in June and said earlier this year that he expects to be ready for the offseason program.
Okung (6-foot-5, 310 pounds) started at left tackle for the Seahawks for six straight years (72 starts) and earned one Pro Bowl nod in 2012. He has dealt with injuries and missed 24 games during that span.
He had offseason surgery after suffering a shoulder injury in the divisional round against the Carolina Panthers. He has said he'll be ready to go by June.
In a league where teams are desperate for offensive line help, Okung, 28, is a quality, starting-caliber left tackle. He immediately projects to be the Broncos' starting left tackle, with Donald Stephenson, who signed as a free agent this offseason, at right tackle.
ESPN's Jeff Legwold and Sheil Kapadia contributed to this report.