"It's an honor to play for this franchise and with this group of guys," Amendola said in a statement released to Fox Sports. "We have one goal -- to win another championship and that's all we care about."
Amendola was scheduled to earn $5 million in base salary and count $6.8 million on the salary cap, which made it unlikely that he would remain with the club unless the sides revisited the deal. He was also scheduled to earn a base salary of $6 million in 2017.
Amendola's restructured contract is for a maximum value of $7.35 million over two years, with an additional $750,000 in incentives and roster bonuses, sources confirmed to ESPN.
The value of the new deal was earlier reported by Fox Sports.
This is the second straight year that Amendola has adjusted his contract to stay with the team. Last year, he reduced his base salary from $4 million to $1.5 million.
Amendola, who emerged in 2015 as one of quarterback Tom Brady's trusted targets, totaled 65 catches for 648 yards and three touchdowns. He played 51.5 percent of the offensive snaps.
He enters his fourth season with the Patriots in 2016.