The deal is worth $44 million with $24 million guaranteed, a source told ESPN's Adam Schefter.
In the days leading up to free agency, Buffalo made several moves to clear cap space to sign Milano, including restructuring the contracts of center Mitch Morse and defensive tackle Vernon Butler, and releasing wide receiver John Brown and defensive lineman Quinton Jefferson. The quartet of roster moves cleared roughly $14 million in cap space, paving the way for Milano's return.
Milano, 26, missed six games in 2020 -- and his absence was obvious whenever he was not on the field. In fact, the only regular-season games the Bills lost came when Milano was injured.
His injuries last season are not an indication of his durability, however, as he had played in 44 of 48 possible games entering the 2020 season.
Milano has been Buffalo's best cover linebacker over the past three seasons, possessing the ability to not only shadow tight ends and running backs in the passing game but also rush the passer and provide run support when necessary.
A fifth-round draft pick out of Boston College in 2017, Milano has 273 tackles, including a career-best 101 in 2019, 6 sacks and 5 interceptions in 54 career games.