Parker's four-extension is worth up to $40 million with an $8 million signing bonus and more than $20 million guaranteed, according to a source.
In his fifth year in the league, Parker is in the midst of his breakout season. He has a career-high 882 receiving yards and six touchdowns this season, and maybe most importantly he hasn't missed a game yet for the first time in his NFL career.
"My desire was to have DeVante remain a member of the Dolphin family and we are excited for the future in Miami," agent Jimmy Gould said in a statement.
The Dolphins' offense has centered around Parker since Preston Williams went on injured reserve in early November. Parker has established a strong connection with quarterback Ryan Fitzpatrick, who has called him the "most consistent part of our offense."
Playing 16 games and reaching 1,000 receiving yards were two of Parker's individual goals this season. Parker is 118 receiving yards shy of his first 1,000-yard season, something that is important to him.
"It would be amazing to get it. I've never had it since high school," Parker said. "The team is No. 1, but everybody has goals, and that definitely is one of mine."
In March, Parker signed a new two-year deal with a team option for 2020. It was essentially a prove-it deal coming off the worst season of his career in 2018. He responded by taking care of his body with better eating and hydration, acupuncture and weekly massages.
The Dolphins' coaching staff, led by Brian Flores, gave Parker a clean slate. Receivers coach Karl Dorrell told him stories of his experience with Pro Bowl receiver Brandon Marshall and challenged Parker to be the player he was coming out of Louisville.
Parker did that, and he's felt more comfortable than ever in the Dolphins' new scheme.
"Staying healthy was my top goal," Parker told ESPN last week. "That has helped change everything. These coaches believed in me. They gave me a second chance when they didn't have to. I hope I can be here a long time."
Parker, Miami's first-round pick in 2015 (14th overall), is rewriting his narrative after four seasons full of injuries and inconsistency. He's finally showing the potential that made him so tantalizing and the Dolphins rewarded him for it.