Last season, he made $3.3 million on a one-year deal.
He recorded 97 tackles, one interception, two sacks, three forced fumbles and two fumble recoveries, scoring one touchdown.
Woodson, 37, is one of the top defensive players in the past decade.
He previously played for the Green Bay Packers.
For his career, Woodson has 1,018 tackles, 56 interceptions, 19 sacks and 32 forced fumbles.
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Aaron Wilson covers the Ravens for The Baltimore Sun