The contract includes $5.5 million in guaranteed money.
Olsen visited with Buffalo, Seattle and Washington but felt most comfortable with the Seahawks, the source said.
Olsen became a free agent after he and the Panthers mutually agreed to part ways after nine seasons. A three-time Pro Bowl selection who has played 13 NFL seasons, he said he was still interested in playing in the NFL.
Olsen’s cap number for the 2020 season was to be $11,675,000 after he ruled out an extension to lower that number.
After dabbling in broadcasting during time off, Olsen returned to the field in 2019 to prove he still could be among the top tight ends in the league. From 2014-16, he became the first tight end in NFL history to have 1,000 yards receiving in three straight seasons.
Olsen, the 31st pick by the Bears in 2007, had 52 catches for 597 yards and two touchdowns this past season. He has 718 career catches for 8,444 yards and 59 touchdowns in his career.
Olsen, who turns 35 on March 11, holds the Panthers franchise record for most receiving yards (1,104 in ’15) and receptions (84 in 2014) in a season by a tight end.
ESPN’s David Newton contributed to this report.
Source: ESPN NFL