12:27 PM ET
- ESPN.com news services
SportsTrust Advisors tweeted that Lacy reached the deal with Seattle. A source told ESPN NFL Insider Adam Schefter that the deal is worth $5.55 million, with $3 million fully guaranteed.
Lacy, 26, appeared to be on track for a bounce-back season in 2016, averaging 5.1 yards per carry in the first five games until a left ankle injury in Week 6 brought everything to a halt. He underwent surgery and was placed on injured reserve.
The former second-round pick from Alabama posted back-to-back 1,100-yard seasons to start his pro career and was the NFL's Offensive Rookie of the Year in 2013.
However, his weight became an issue in 2015, when Green Bay coach Mike McCarthy said Lacy needed to come back in better shape after rushing for just 758 yards. After trimming down last offseason, he appeared to regain at least some of the weight he lost while working out with P90X founder Tony Horton, though he was still effective.
Lacy's ankle injury was the impetus for the Packers to move receiver Ty Montgomery to running back full time last season.
ESPN's Rob Demovsky contributed to this report.