Hilton was a third-round pick of the Colts in 2012 and has made four Pro Bowls throughout his career.
T.Y. Hilton is returning to the Colts, Hilton confirmed on Twitter on Wednesday.
According to NFL Network's Ian Rapoport, the deal is for one year and $10 million with $8 million guaranteed.
According to NFL Network, the Ravens were among the other suitors who pushed to sign Hilton.
Hilton, 31, was a third-round pick of the Colts in 2012. He has made four Pro Bowls throughout his career and has recorded 1,000 or more receiving yards in a season five times.
Winners and Losers of the First Phase of Free Agency
Hilton, though, had one of his least productive seasons in 2020, totaling just 762 receiving yards on 56 catches. The struggles came after recording a career-low in yards (501) and yards per game (50.1) in 2019.
Next season, Hilton will also be catching passes from a third different quarterback in as many seasons as Indianapolis acquired Carson Wentz from the Eagles in an offseason trade.