Patriots tight end Hunter Henry signed a three-year contract extension this week, but the deal essentially becomes an option after Year 2.

Henry’s three-year deal is for $27 million with $15.8 million in guarantees and a $7.5 million signing bonus, per a source.

It includes $1 million per year in per-game roster bonuses and $350,000 per year in workout bonuses. His $1.65 million salary in 2024 and his $6.65 million salary in 2025 are fully guaranteed. His $7.15 salary in 2026 does not contain guarantees. An additional $1 million per year can be earned in reception incentives.

Henry will carry a $5.32 million cap hit in 2024, $10.5 million in 2025 and $11 million in 2026. He previously was signed to a three-year contract worth $12.5 million per year.

The 29-year-old re-signed days before he was expected to hit free agency as the best tight end available. The Patriots are still expected to add to the position, however, with only Henry and La’Michael Pettway under contract for next season.

Tight ends Mike Gesicki and Pharaoh Brown are set to hit free agency this week.