The contract can be worth up to $91.8 million if incentives are met, the sources said.
Steele, who is entering his fourth season with the Cowboys, is coming off an ACL injury that ended his 2022 season after 13 games. He was cleared for training camp however and didn’t start on the physically unable to perform list.
He joins cornerback Trevon Diggs as key Cowboys players to receive an extension this year. Diggs received a five-year, $97 million deal in July. Starting right guard Zack Martin also received a reworked deal last month that will guarantee him $36 million over the next two seasons to end a holdout that lasted for most of training camp.
Steele, 26, has started 40 of the 45 games he has played in for the Cowboys.