Hayden and the Colts reached agreement on a five-year deal worth approximately $43 million. The agreement, which would reportedly include over $22 million in guarantees, will pay Hayden about $29 million in the first three years and carries a 2009 salary-cap number of between $6 million and $7 million.

"Needless to say, Kelvin is very happy," Fletcher Smith, Hayden's agent, told the Indianapolis Star. "The (contract) just made a lot of sense for us."

Smith described discussions with the Colts as "a whirlwind" that "came together quickly at the end." The key, he added, was convincing the Colts to include $29 million in the first three years of the contract.

The former University of Illinois defensive back, a second-round draft pick in 2005, was scheduled to become an unrestricted free agent on Feb. 27.

There was speculation that he would be designated as the Colts' franchise player if a deal could not be worked out by today. The one-year franchise tag for a cornerback is $9.957 million.

Hayden, 25 and the team's 2005 second-round draft pick, has started 26 regular-season games over the past two seasons.

By not having to use the franchise tag on Hayden, the Colts still could affix it to center Jeff Saturday if they can make that one-year tender -- $8.45 million -- work under the projected 2009 salary cap of $123 million. Saturday is one of nine Colts eligible to become a free agent at the end of the month.