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Mike Williams won't be headed to free agency. Instead, the veteran wideout is getting paid to remain with the Los Angeles Chargers.

The Chargers are signing Williams to a three-year, $60 million contract, NFL Network's Ian Rapoport reported Tuesday. The deal includes $40 million guaranteed at signing, per Rapoport.

Williams put together his most compete season at the right time.

Playing on a fifth-year option of $15.7 million for the Chargers, Williams caught 76 passes -- eclipsing his previous career-high by 27 -- for 1,146 yards and nine touchdowns. He had a midseason lull but was also working through a knee issue.

Having receiver Keenan Allen on the other side helps as does the presence of a rising start at quarterback in Justin Herbert, but Williams set himself up for this hefty payday just before the deadline to apply the franchise tag and before he hit the open market next week.

Bottom line?

This is the best-possible outcome for Williams, Herbert and the Chargers in general.

And if Williams continues to build on his impressive 2021 effort, fantasy owners will be big winners as well.