Agents Buddy Baker and Tony Bonagura of Exclusive Sports Group finalized the deal Tuesday with Washington senior vice president of football operations Rob Rogers.
The three-year extension for McLaurin includes a $28 million signing bonus, the largest given to any wide receiver, and also has 76.4% of the new money in the deal guaranteed.
The deal contractually ties McLaurin, 26, to Washington through the 2025 season. McLaurin's rookie contract had been set to expire after the 2022 season.
McLaurin acknowledged the extension on Thursday, thanking the organization and its fans.
"While I am both humbled and ecstatic about this contract, it motivates me to work even harder," he wrote in the statement posted on Twitter. "I understand and embrace the responsibility that comes with signing this extension. To whom much is given, much is required. There is no other place I would rather be on fan base I would want to represent."
He had skipped the three weeks of voluntary OTAs as well as the team's mandatory three-day minicamp. The deal ends what would have been a headache for a franchise that didn't need another one. McLaurin's popularity both in the locker room as a leader and with the fan base would have resulted in more displeasure directed at the Commanders.
Washington coach Ron Rivera said on June 15 that they started to have more talks about a week earlier. One source told ESPN's John Keim that Rivera reached out to McLaurin -- not to negotiate but to reiterate his importance to the organization. Washington didn't waver on its desire to sign McLaurin and did not consider trading him.
McLaurin's contract is the latest in a wide receiver market that has exploded this offseason. Davante Adams (five years, $140 million), Tyreek Hill (four years, $120 million) and A.J. Brown (four years, $100 million) each signed deals worth at least $100 million. Other wide receivers to sign major contracts include Stefon Diggs (four years, $96 million), Cooper Kupp (three years, $80.1 million), Mike Williams (three years, $60 million) and Chris Godwin (three years, $60 million).
McLaurin surpassed 1,000 yards receiving in two of his first three seasons after being selected in the third round of the 2019 draft despite playing with nine different starting quarterbacks. He caught 77 passes for 1,053 yards and five scores last season after grabbing 87 for 1,118 yards and four touchdowns the previous season. He finished with 919 receiving yards as a rookie. He has missed just three games in his career.