The Buffalo Bills and wide receiver Emmanuel Sanders reached agreement on a one-year, $6 million deal that includes another $500,000 in incentives, a source told ESPN's Adam Schefter on Tuesday.

The New Orleans Saints released Sanders earlier this month as they scrambled to get under the salary cap. He had been scheduled to make $8 million, with $2 million guaranteed, in 2021.

Sanders, 33, caught 61 passes for 726 yards and five touchdowns in 14 regular-season games last season. He caught another eight passes for 51 yards in the playoffs.

The 5-foot-11, 180-pounder has a total of 662 catches for 8,619 yards and 47 touchdowns in an 11-year career with the Pittsburgh Steelers, Denver Broncos, San Francisco 49ers and the Saints.

He has been selected to two Pro Bowls and has appeared in three Super Bowls -- winning a title with the 2015 Broncos.

Later Tuesday, the Bills traded tight end Lee Smith to the Atlanta Falcons for a 2022 late-round pick, a league source told Schefter. Smith, 33, made his four catches last season count, scoring two touchdowns and totaling 35 yards.

Smith was a fifth-round draft pick of the New England Patriots in 2011 out of Marshall.

ESPN's Mike Triplett contributed to this report.