Josh Allen will remain a franchise cornerstone for the Jacksonville Jaguars.

Allen and the only NFL team he has ever known agreed to a new five-year, $150 million contract with $88 million guaranteed on Wednesday, per ESPN's Adam Schefter.

This comes after the Jaguars placed the franchise tag on him March 5, which Spotrac noted was worth $24 million.

While details about Allen's cap hit won't be available until the contract is officially signed, the deal will almost certainly lower his cap figure for the 2024 season from what it would have been if he played on the franchise tag.

The Jaguars entered the day with $18.2 million in cap space, but that was with Allen's $24 million hit on the one-year franchise tender.

Allen is now the second-highest-paid edge-rusher in the NFL by total value and average annual salary. Nick Bosa of the San Francisco 49ers ranks ahead of him with a $30 million average salary and $170 million total.

The $88 million guarantee for Allen ranks third behind Bosa ($122.5 million) and Myles Garrett ($100 million).

It didn't stop the two sides from negotiating a long-term deal, as Cameron Wolfe of NFL Network reported at the time that placing the tag on him was done to give the Jaguars more time with the goal of a new contract.

"We were not able to reach agreement on a contract extension with Josh before today's deadline, and thus, we have tagged him," Jaguars general manager Trent Baalke said in a statement in March, per Michael DiRocco of ESPN. "We certainly value Josh's leadership on the field, in the locker room and in the community. Our objective to keep Josh in Jacksonville in the coming years remains unchanged and negotiations will continue."

Those negotiations ended in this new contract, which is excellent news for the Jaguars as he heads into his sixth season with the team that selected him with the No. 7 pick of the 2019 draft.

NFL @NFL

What a game for Josh Allen!<br><br>📺: <a href="">#CINvsJAX</a> on ESPN/ABC<br>📱: Stream on <a href="">#NFLPlus</a> <a href=""> <a href="">

Allen wasted zero time making an impact as a rookie Pro Bowler with 10.5 sacks.

However, there was inconsistent production for the next three years that included him playing just eight games in 2020 because of a knee injury. DiRocco noted Baalke decided against giving Allen a contract extension ahead of the 2023 campaign, making it a "prove-it season."

Prove it he did.

Allen was one of the best pass-rushers in the entire NFL in 2023 as a Pro Bowler with 66 tackles, 17.5 sacks, two forced fumbles, one interception and one pass defended while appearing in all 17 games.

Those efforts resulted in a new deal, and he and the team can now focus on chasing a playoff spot.