His agent, Mike McCartney, told The Associated Press on Tuesday that Ngata will get $40 million in the first two years of the deal. A source familiar with the deal told ESPN NFL Insider Adam Schefter that the total value of the deal is $61 million.
McCartney told ESPN that the deal came together Monday night and then Tuesday afternoon, when it was finalized.
"The two things that brought this together was a deadline and domination," McCartney told ESPN. "Today was the deadline to sign franchise players and there's no doubt that when the Ravens saw Haloti dominate against the Steelers, they wanted this deal done. Deadlines and domination got this done."
The Ravens (1-1) crushed the Steelers in Week 1, rolling to a 35-7 victory. Ngata had four tackles and a pass deflection in the win.
Ravens general manager Ozzie Newsome called Ngata "instrumental to everything we do on defense" in a statement announcing the signing.
"He's a player who commands an offense's attention every single play, and his presence allows us to play a variety of effective defenses," Newsome said. "Teams have to prepare for Haloti every week. Opposing coaches game-plan on Tuesday with Haloti in mind. They know he can dominate, and they know he is going to play at a very high level."
The five-year deal expires after the 2015 season when Ngata will be 31 years old.
"It just feels awesome," Ngata said in a statement. "I won't have to worry about my family, my kids, with money problems. For me to be here another five years is great. Hopefully, I can be here and retire here."
"You rarely see players around the league play with one team their entire career," Ngata said in a statement released from the team. "For me to be here another five years is great, and I'm thankful for the opportunity the Ravens have provided me. Hopefully, I can retire here."
Ngata headed into this season with a $12.4 million franchise tender that was fully guaranteed. The All-Pro defensive tackle has 10 tackles, six solos, one forced fumble and two fumble recoveries.
Teams had until Tuesday at 4 p.m. ET to sign franchised-players to long-term extensions or they have to wait until after the season to negotiate a deal.
Twelve players were franchised this offseason and Ngata became the 10th player to sign a long-term contract. The other two players, San Diego Chargers receiver Vincent Jackson and Miami Dolphins defensive tackle Paul Soliai, did not agree to extensions before Tuesday's deadline.
Last season, Ngata finished with 65 tackles, ranked second on the Ravens with a career-high 5½ sacks and was named to the AP All-Pro team and earned a second straight Pro Bowl berth.
Since coming to Baltimore as the 12th overall pick in the 2006 draft, Ngata has missed only two games. He has recorded 338 tackles, 12 sacks and three interceptions in his career.
Information from ESPN NFL Insider Adam Schefter and The Associated Press was used in this report.