Graham was set to become an unrestricted free agent before the Bengals used their franchise tag on the veteran kicker last February. Graham is entering his seventh season in Cincinnati and is the team's all-time field-goal percentage leader at 87.5 percent.
"We're happy Shayne is signed in advance of our offseason camps," Bengals head coach Marvin Lewis said in a statement. "And this does not preclude our continuing to talk to Shayne and his representatives about reaching a longer-term agreement."
Graham made 21-of-24 field goals last season and was perfect in 15 extra-point attempts. In 2009, he will make the average salary of the top five kickers in the NFL from the previous season.
James Walker covers the AFC North for ESPN.com