Woodhead had a career season in 2013. He finished second on the team in catches with 76 for 605 yards and six touchdowns -- the most touchdown catches for a running back last season, and second-most in catches and receiving yards. Woodhead added 429 rushing yards and two rushing touchdowns.
Terms of the deal were not disclosed, but Woodhead weighed in on the deal via Twitter.
- danny woodhead (@danny__woodhead) July 22, 2014
The versatile running back is seen as a good fit for San Diego's up-tempo, no-huddle offense, with his ability to catch the ball out of the backfield and still run between the tackles at 5-foot-8 and 200 pounds.
"Danny is an integral part of our offense," Chargers general manager Tom Telesco said in a prepared statement. "His work ethic and on-field production were key elements last year. We look forward to having him be a part of the Chargers organization into the future."
The Chargers had already signed Donald Brown to a three-year, $10.4 million deal this offseason. Brown will make $4 million in total compensation 2014.
With Woodhead and Brown have signed through 2016, Ryan Mathews could be playing his final season in San Diego. The Fresno State product is in the final year of a rookie contract that will pay him $1.98 million in 2014.
Mathews rushed for a career-high 1,255 yards and six touchdowns last season, playing a full 16-game season for the first time in his four-year career. The Chargers have said that Mathews will remain the team's every-down running back for the upcoming season. Brown will serve as a complementary back to Mathews and Woodhead.