Green Bay quarterback Aaron Rodgers (12) looks downfield during the first half of an NFL football game against the Packers’ NFC North Division rival the Detroit Lions on Jan. 9. The Packers checked off what might be the team’s most important piece of offseason business by signing Rodgers to a contract extension Tuesday. (Lon Horwedel/AP photo)

GREEN BAY, Wis. (AP) — Aaron Rodgers has officially signed a contract extension assuring the two-time reigning MVP will remain with the Green Bay Packers.

The Packers announced the extension Tuesday. Terms weren’t released, but NFL Network reported Rodgers will make over $150 million over the next three years.

“We are very pleased to be able to come to an agreement with Aaron that keeps him in Green Bay,” Packers general manager Brian Gutekunst said in a statement. “His play on the field and leadership in our locker room remain vital in our pursuit of another Super Bowl title. The agreement also allows us to maintain and enhance what we feel is already a very competitive roster.”

Rodgers, 38, had announced a week ago on Twitter that he was returning to the Packers for an 18th season but said no deal had been signed at that point. Immediately after the season, Rodgers had said he was unsure whether he would return to the Packers, request a trade or retire.

The structure of the four-time MVP quarterback’s contract is designed to help the Packers’ salary-cap situation for now. According to NFL Network, Rodgers’ cap hit this year would be $28.5 million, $18 million lower than it would have been without this new deal.

Green Bay entered this week about $46 million over the cap.

The Packers released outside linebacker Za’Darius Smith and offensive lineman Billy Turner and extended the contract of outside linebacker Preston Smith this week as they worked to get below the cap in time for the opening of free agency Thursday.

Now the Packers will try to work on reaching a long-term deal with All-Pro receiver Davante Adams, who received a franchise tag last week. If they don’t reach an agreement by July 15, Adams’ salary for the 2022 season would be just over $20 million.

Rodgers has spent his entire NFL career in Green Bay, but his future with the organization had been the subject of speculation ever since the Packers traded up four spots to take Utah State quarterback Jordan Love with the 26th overall pick in the 2020 draft.

Rodgers skipped the Packers’ organized team activities and mandatory minicamp last year in a standoff with team management. He reported to training camp on time but expressed his concerns with the organization and said he wanted to have a voice in the team’s decision-making process.

But he said on multiple occasions over the last few months that his relationship with team officials had improved significantly.

Rodgers has earned MVP honors each of the last two seasons and has helped the Packers win three straight NFC North titles. The Packers lost in the NFC divisional playoffs last season after reaching the NFC championship game in the 2019 and 2020 seasons.

The Packers haven’t reached the Super Bowl since Rodgers led them to a title in the 2010 season.

AT A GLANCE:

Cap concerns limit Packers’ options in free agency

GREEN BAY, Wis. (AP) — Green Bay Packers (13-5)

UNRESTRICTED FREE AGENTS: P Corey Bojorquez, LB Oren Burks, LB De’Vondre Campbell, CB Rasul Douglas, DT Jack Heflin, OT Dennis Kelly, CB Kevin King, DE Tyler Lancaster, G Lucas Patrick, WR Equanimeous St. Brown, CB Chandon Sullivan, TE Robert Tonyan, CB Isaac Yiadom

RESTRICTED FREE AGENT: WR Allen Lazard

NEEDS: The Packers can breathe a little easier heading into free agency now that MVP quarterback Aaron Rodgers has signed a contract extension. The Packers also placed a franchise tag on All-Pro wide receiver Davante Adams to keep him from becoming an unrestricted free agent.

But the Packers still have an unsettled situation at receiver because of the possibility Valdes-Scantling, Lazard and St. Brown could depart. The Packers would love to hang on to Campbell and Douglas but might not be able to afford them. Campbell and Douglas had breakthrough seasons as first-year Packers in 2021, with Campbell earning All-Pro honors and Douglas delivering numerous big plays.

Complicating matters is the Packers’ cap situation. The Packers have tried to address that by releasing OLB Za’Darius Smith and OT Billy Turner and extending or restructuring the contracts of a number of veterans.

AVAILABLE SALARY CAP SPACE (about): $7 million over.