Wide receiver David Reed has agreed to a two-year contract that carries a maximum value of nearly $2.5 million and includes a $500,000 signing bonus, according to league sources with knowledge of the situation.
Reed was a restricted free agent who didn't receive a tender from the Ravens.
Reed returned last season after spending the first 11 games of the season on the physically unable to perform list with a torn anterior cruciate ligament suffered the previous year. He caught five passes for 66 yards and recorded four special-teams tackles in five games.
Team officials have been impressed with the 6-foot, 190-pounder's work ethic as he diligently rehabbed his knee injury to get back on the field last season.
By retaining Reed at a lower price than the $1.323 million original-round tender, the Ravens saved some space against the salary cap and kept some depth at receiver and a core special teams contributor.
Meanwhile, the Ravens are about to engage in contract talks with Ellerbe, the top free agent at his position.
On the radar of the Cleveland Browns, among other NFL teams, Ellerbe has been awaiting the Ravens' contract offer and is expected to receive it prior to today's 4 p.m. start of the free agency signing period.