Tom Brady has agreed to a three-year, $27 million contract extension with the New England Patriots, per Sports Illustrated's Peter King.

The extension keeps Brady under contract with the Patriots through the 2017 season, but also provides the club with some significant cap relief. Brady was set to count around $43.6 million combined over the next two seasons. The new extension spreads that out to where Brady will only count a combined $28.6 million against the Patriots cap in 2013 and 2014.

With the salary cap being relatively flat, the $15 million in cap space over the next two years could be invaluable as the Patriots flesh out the rest of their roster.

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Terry McCormick covers the Titans for TitanInsider.com