The deal is worth a maximum value of $33 million, a source told ESPN.
Schraeder's new deal includes $12.5 million guaranteed over the first two years, the source said, and $19.1 million in base salary over the first three. He was under contract through this season after signing a restricted free-agent tender worth $2,553,000.
"The toughness that he plays with, we totally rely on him both in the run game and the pass game,'' Falcons coach Dan Quinn said of Schraeder. "The development that he's done over the last three years really set the stage for himself to be here for an extended time. Congrats to him. We're so pumped that he's going to be a part of it for a long time."
With the move, the Falcons made sure to lock up one of the key figures of an improved offensive line. Schraeder, a former undrafted player out of Valdosta State in 2013, has been a regular starter since the 2014 season. He started all 16 games a year ago and has started all 10 this season, helping the Falcons to a 6-4 record and first-place standing in the NFC South.
Schraeder, 28, is known for his toughness. He would have generated much interest on the open market, according to various executives around the league.
With Schraeder now signed to a long-term deal, the next Falcons player up for extension is likely to be cornerback Desmond Trufant, one of the top players in the league at his position. Trufant is under contract through 2017 after the team exercised the fifth-year, $8,026,000 option, but that doesn't preclude the two sides from working out a lucrative long-term deal.