The new deal includes Gronkowski earning $1 million more in per game bonuses and $3.3 million in incentives, reports Schefter.
Gronkowski, 29, has two years left on his contract with a base salary of $8 million for this season and $9 million in 2019.
The tight end can earn a maximum of $3.3 million by achieving three of the four following incentives: $1.1 million for 70 or more catches, $1.1 million for 80% playing time, $1.1 million for nine or more touchdown catches and $1.1 million for 1,085 receiving yards. Gronkowski's base salary will remain at $8 million but could increase to $13.3 million with the incentives, per Schefter.
Last season, Gronkowski had 69 catches, 1,084 receiving yards, eight touchdowns and he played 79.3% of the time.
The NFL Network's James Palmer previously reported in May that the Patriots were working on restructuring Gronkowski's deal.