According to the sources, the $80 million contract includes:
$37 million, due at signing
$60 million, guaranteed for injury
$5 million in incentives, making the value of the contract up to $85 million
The Chiefs and Jones, who received the team's franchise tag, had until Wednesday's deadline to agree to a long-term contract.
The extension comes a week after the Chiefs and quarterback Patrick Mahomes agreed to a 10-year contract that could be worth up to $503 million. The extension does not begin until the 2022 season, so the Chiefs took on little in the way of additional salary cap obligations in 2020 and 2021 for Mahomes in extending his contract. Mahomes in 2020, for instance, will have a cap cost of about $5.3 million, or less than 3% of the Chiefs' cap.
The Chiefs are now the only team in the NFL with three players making at least $60 million guaranteed with Jones joining Mahomes ($140 million) and defensive end Frank Clark ($62.3 million).
Mahomes and Jones both took to Twitter to celebrate after news of Jones' deal broke.
Big facts!!! https://t.co/rcSzEkfKzB— Chris Jones (@StoneColdJones) July 14, 2020
Earlier this month, tweeting a reply to an NFL Network video on his contract talks, Jones had hinted he would hold out unless he received a long-term deal.
Jones, 26, led the Chiefs in sacks in each of the past two seasons.
He predicted in training camp in 2018 that he would lead the league in sacks, and while he didn't, he got close. Jones' 15.5 sacks ranked third in the league behind Aaron Donald and J.J. Watt. Jones that season set an NFL record for consecutive games with a sack with 11.
He had nine sacks in 2019 despite missing three games with a groin injury. He was selected to play in the Pro Bowl for the first time.
Jones failed to register a sack in Super Bowl LIV but still played a big role in the Chiefs' victory. His pressure on 49ers quarterback Jimmy Garoppolo forced an interception in the second quarter. Jones also knocked down three of Garoppolo's passes.
Jones didn't participate in the Chiefs' offseason practices and workouts last year in the hope of getting a contract extension. It didn't happen, and Jones reported to training camp on time. He played the season in the final year of the contract he signed in 2016 as the Chiefs' second-round draft pick out of Mississippi State.
He has 33 sacks, 2 interceptions and 7 forced fumbles in 61 career games.
ESPN's Jeremy Fowler, Chris Mortensen and Adam Teicher contributed to this report.