Financial terms were not disclosed, but a source tells ESPN's Adam Schefter that the contract is worth $22 million and includes $10 million guaranteed.
Sanders finished second in the NFL with 36 made field goals in 2020, missing only three attempts for a conversion rate of 92.3%. He was 8-of-9 on attempts from 50 yards or longer. He also converted all 36 of his PATs and was a first-team All-Pro selection.
Sanders, 25, was drafted by the Dolphins in the seventh round of the 2018 draft out of New Mexico.
In three seasons he has made 77 of 89 field goal attempts (86.5%) and has made 100 of his 102 PAT attempts.