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.
A 2010 fifth-round draft pick from Utah, Reed led the
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