FLOWERY BRANCH — The Falcons signed cornerback A.J. Terrell to a four-year contract extension worth $81 million, with $68.5 million guaranteed, according to a person familiar with the negotiations.

The team announced the signing later in the day.

“We love AJ everything he’s about,” Falcons general manager Terry Fontenot said on July 31. “He embodies everything that we’re about as a team and obviously you see him out there making plays every day. So, we love AJ.”

Terrell, who signed the deal Thursday, went about his business quietly this offseason, while he was in line for the lucrative contract extension.

“I’m doing me,” Terrell told The Atlanta Journal-Constitution recently. “I’m going to let my agent handle that.”

The Terrell signing is the latest major move by the franchise this offseason as it seeks to end a streak of six consecutive losing seasons and return to the playoffs.

“We are very glad to be in the position to provide this extension for A.J., who is certainly well deserving of it,” Fontenot said in a statement released by the team. “A homegrown player, he embodies the characteristics and traits we want as a Falcon.”

In addition to re-signing Terrell, the Falcons signed quarterback Kirk Cousins in free agency, traded for outside linebacker Matthew Judon and signed safety Justin Simmons -- all former Pro Bowlers -- this offseason.

The Falcons are picked by many to win the NFC South.

“My hope is that we’ll be in the playoffs,” Falcons owner Arthur Blank said. “I have every reason to think that we’re going to be very competitive this year. But, we’ve got to play the schedule. We’ve got to play the teams, and we’ve got to make it happen.”

Blank said he was definitely optimistic about the upcoming season.

“Certainly more optimistic than I’ve been in several years,” Blank said. “(I) have reason to feel that way. But, again, every game is a battle. The other teams have got a lot of great talent, got good coaching.”

The Falcons picked up Terrell’s $12.34 million fifth-year option for the coming season and have completed a long-term deal like they did right guard Chris Lindstrom last year.

“Well, again, we’ll never get into those private conversations,” Fontenot said at the league meetings. “Those are things that we’ll talk specifically with him and his agent about at the appropriate time. (We’ll) make everyone aware of it. But again, love A.J. and everything he’s about.”

Tennessee recently signed cornerback L’Jarius Sneed to a four-year, $76 million deal.

The market for cornerbacks shifted upward with the Jaguars agreeing to a four-year, $76.5 million deal with cornerback Tyson Campbell. A total of $53.4 million of the deal was guaranteed. The deal averages $19.1 million and is the highest annual mark for any cornerback who has never been named to a Pro Bowl.

Terrell, a physical tackler who has matched up against the opposition’s top receiver at times, was second-team All-Pro in 2021. He has started all 61 games that he’s played in. He was drafted 16th overall in 2020.

He has four career interceptions and hasn’t had one over the past two seasons. He has 43 career pass break-ups and is trying to convert some of those breaks-ups into interceptions.

Terrell gave up explosive touchdown passes to Calvin Ridley, DeAndre Hopkins and Mike Evans last season. Falcons cornerbacks allowed eight touchdown passes of 20 yards or more, which was tied for third most in the NFL.

Mike Hughes has been working opposite of Terrell at cornerback on the first-team defense. Clark Phillps III finished last season as the starter. Dee Alford has been the first-team nickel back.

Terrell is on his third NFL head coach. He was a rookie under Dan Quinn. He played the last three seasons under Arthur Smith.

He’s familiar with new coach Raheem Morris from when he took over for 11 games as the interim coach after Quinn was fired in 2020.

Overtime, Terrell has taken a leadership role on the defense.

“Natural, I feel like coming in, I always said, in order for me to be a leader, you’ve got to hold yourself accountable,” Terrell said. “That’s what I stood on since Day One when I got here. It’s a natural transition. After years, and as time goes on, it just magically happens and falls in your lap. That’s where it’s at right now.”

Terrell is fine with passing along what he’s learned.

“Just being able to give knowledge to the younger guys or even the older guys,” Terrell said. “Being able to pick the brain and take what they have for me too. So, all those things is what make the team better. The defense better and ultimately yourself.”

The Falcons ranked 22 in pass defense (207.3 per game) and 21st in sacks with 42.

The Falcons put a lot of stock in Terrell’s 2021 season, when teams completed 42 of 86 passes (50%), quarterbacks had a 61 passer rating throwing at him and he gave up three touchdowns, according to profootballrefernce.com’s advanced stats.

Last season, teams completed 45 of 81 passes (55.6%) and had a 93.2 passer rating when throwing at Terrell. He gave up four touchdowns.

In 2022, teams were 42 of 75 (56%) for a 102 passer rating and six touchdowns.

In his rookie season, teams completed 71 of 106 passes (67%) for a 109.6 passer rating and six touchdowns.