to a five-year contract worth more than $45 million on Monday, a day before being eligible to become a free agent.
A person familiar with the negotiations informed The Associated Press of the agreement, and spoke on the condition of anonymity because the deal has not been announced. A news conference is expected to be held to announce Hughes' re-signing in the next two days.
Hughes arrived in Buffalo late Sunday night once the framework of the contract was put together after a lengthy day of negotiations, the person said.
Though Hughes garnered plenty of attention from other teams during the NFL's three-day negotiating period that opened Saturday, his preference was to remain in Buffalo and play under new head coach Rex Ryan, the person said.
Ryan, who took over after Doug Marrone opted out of his contract on Dec. 31, is a defensive specialist who is noted for his aggressive philosophy.
Hughes also wanted to be loyal to the Bills, after his career blossomed in Buffalo over the past two seasons after being acquired in a trade with Indianapolis. The 2010 first-round draft pick had 10 sacks in each of the past two years after combining for five in his first three seasons with the Colts.
His re-signing keeps the Bills formidable defensive front intact. It's a group rounded out by three Pro Bowl selections: tackles Marcell Dareus and Kyle Williams, and right end Mario Williams.
The defense finished fourth in the NFL in yards allowed and led the league with 54 sacks, the second consecutive season the unit topped 50.
Hughes will maintain a regular role as an outside pass-rusher on a defense that is making the switch to a three-linemen, four-linebacker alignment under Ryan.
Hughes' re-signing marks the latest in a string of significant offseason moves the Bills have made to improve on their 9-7 finish last season. It was Buffalo's best finish in a decade, but the team still missed the playoffs to extend the NFL's longest active postseason drought to 15 years.
Last week, Buffalo strengthened its offense by reaching an agreement to acquire running back LeSean McCoy in a trade with the Philadelphia Eagles in exchange for linebacker Kiko Alonso. The NFL's 2013 rushing leader arrived in Buffalo on Sunday shortly after agreeing to a newly restructured five-year contract that includes $26.5 million in guaranteed salary.
In a separate trade, the Bills added experience depth at quarterback by acquiring Matt Cassel from the Minnesota Vikings. Cassel will compete with EJ Manuel for the starting job.
Both trades will become official once the NFL's new season opens on Tuesday.