The team announced the contract on Thursday.
Moncrief signed a one-year contract worth a guaranteed $9.6 million with the Jaguars last March. In 16 games, he caught 48 passes for 668 yards, which were his highest totals since he caught 64 passes for 733 yards in his second season in 2015 -- the last time he played in all 16 games.
Moncrief spent his first four seasons with the Indianapolis Colts, who drafted him in the third round (90th overall) in 2014. Moncrief caught 152 passes for 1,875 yards and 18 touchdowns with the Colts. However, he missed seven games in 2016 and four games in 2017 because of injuries and struggled to make much of an impact despite playing opposite T.Y. Hilton.
ESPN's Michael DiRocco contributed to this report.