Denver Broncos Report: Peyton Manning Restructures Contract; Takes a $4 Million Pay Cut

Peyton Manning is one step closer to reaching a contract agreement that would assure his return to the Denver Broncos.

Sources are reporting that Manning, the five-time NFL MVP, will allow the Broncos to restructure his contract. He will be taking a $4 million pay cut, which will give the organization more cash to use on the free-agent market, which starts on March 10 at 4 p.m. ET.

Team sources added that the contract will be finalized after Manning, 38, passes his physical, which should take place within 24 hours. There are also minor details in the contract that need to be finalized.

"I don't talk about my contract. I never have in 18 years and I'm not going to start now," Manning told the Denver Post Wednesday. "I've been working real hard and I'm excited to be back with the Denver Broncos. Can't wait for April 13 to get here when the team can finally come together. I'm excited to get to work and get to know the new coaches and looking forward to trying to make 2015 a special year."

Whether or not the veteran would return for next season was unclear after the Broncos failed to advance to the AFC championship game. Manning met with general manager John Elway and president Joe Ellis on Feb. 12 to discuss his future with the organization. After the meeting, it became clear the Manning would return for a fourth season with the Broncos. Contract negotiations then began.

"I think with Peyton, obviously there is not much he can add to his legacy," Elway had said. "I do think that the one thing he can add is another Super Bowl championship. I think with where Peyton is, as I told him in our meeting, I said, 'You don't have to throw for another yard and you don't need to throw for another touchdown pass because your legacy is going to be one of the all-time greats as it is as we sit here now.' Where he can really add to his legacy is to win a Super Bowl. I think that's our goal, as it is for 31 other teams, but we feel like we've got a real good football team and Peyton Manning is the best player for us."

Without the pay cut, Manning was set to make a guaranteed $19 million this upcoming season. He is also due $19 million in 2016, which is the final year of his contract. Manning, who turns 39 later this month, appears to be taking his career year-by-year. He has not discussed any future retirement plans.

Manning was the Indianapolis Colts' first pick in the 1998 NFL draft. If Manning signs this new contract, he will be entering his 18th season in the league.