Financial terms were not disclosed, but the deal is worth $17 million, with $9 million guaranteed, a source told ESPN's Adam Schefter.
The team was prepared to use its franchise tag on Gano if a deal couldn't be reached by 4 p.m. Tuesday, the last day teams can use the designation.
The Panthers opted in 2017 to keep Gano, 30, after drafting Georgia Tech kicker Harrison Butker in the seventh round. The decision was made primarily because of Gano's experience on a team that general manager Marty Hurney thought had a chance to make a Super Bowl run.
Butker was placed on the Panthers' practice squad and later was signed by the Kansas City Chiefs.
Gano's 2016 season was marred by a missed 50-yard field goal attempt in the final seconds of a season-opening 21-20 loss to the Denver Broncos and a broken plant foot that required offseason surgery.
The former Florida State kicker rebounded in 2017 with one of his best seasons, making the Pro Bowl. He converted a career-best 96.7 percent of his attempts, going 29-for-29 inside the 50-yard line.