Wide receiver Sammy Watkins is staying with the Kansas City Chiefs after agreeing to restructure his contract, a source confirmed to ESPN.

The source said Watkins' new deal has a maximum value of $16 million, including $7 million in incentives, and contains a no-trade clause.

The move creates $5 million in salary-cap space for the Chiefs, according to Yahoo Sports, which first reported the restructured contract.

The Super Bowl champions were down to $171 in cap space prior to the new agreement.

Watkins acknowledged the move on Twitter on Friday morning, writing "Im back KC LETS GET IT..! #RUNITBACKTOUR"

Im back KC LETS GET IT..! #RUNITBACKTOUR

— King me () April 3, 2020

The move keeps the Chiefs' top four receivers from 2019 -- Watkins, Tyreek Hill, Demarcus Robinson and Mecole Hardman -- together for next season. Kansas City signed Robinson to a one-year contract last month.

Watkins had been scheduled to make $13.7 million in base salary in 2020 and count a prohibitive $21 million against the cap.

The 26-year-old Watkins has been mainly a third receiving option for the Chiefs, and other than the occasional big game -- most notably a 198-yard, three-touchdown showing against the Jacksonville Jaguars in the 2019 regular-season opener -- he hasn't produced a lot for Kansas City in two seasons. He has caught 92 passes for six touchdowns in 24 regular-season games.

But Watkins delivered in each of the past two AFC Championship Games, with 100-plus receiving yards in both contests. His 38-yard catch was the big play on the Chiefs' go-ahead touchdown drive in the fourth quarter of Super Bowl LIV, and general manager Brett Veach has said the Chiefs signed Watkins for the big games.

"He's done a great job for us," Chiefs coach Andy Reid said Thursday, before news of the reworked deal came out. "And as good a player he is, he's an even better person, so we've enjoyed having him here."

Before joining the Chiefs, Watkins played three seasons with the Buffalo Bills and one with the Los Angeles Rams. In 76 games, he has 284 receptions for 4,244 yards and 31 touchdowns.

ESPN's Adam Teicher and The Associated Press contributed to this report.