Irsay and team president Bill Polian are scheduled to discuss the deal at a Sunday afternoon news conference.
The deal comes nearly five months after the team used the exclusive franchise tag to prevent Manning from negotiating with other teams. Had Manning signed the one-year offer, he would have made $23.1 million this season.
By getting the long-term deal done, Manning's salary cap number will be reduced, allowing the team to sign more of its own free agents. The Colts have already re-signed two key veterans - safety Melvin Bullitt and kicker Adam Vinatieri - this week. But they lost linebacker Clint Session to Jacksonville in free agency.
Other key players the club is trying to work out deals with include running back Joseph Addai and left tackle Charlie Johnson. Also, they have not signed first-round pick Anthony Castonzo.
The Colts have singed former Villanova offensive lineman Ben Ijlana, a second-round draft pick, according to CBS Sports.
The Colts report to training camp Sunday.
Umenyiora ends holdout. Two-time Pro Bowl defensive end Osi Umenyiora of the New York Giants ended his holdout after one day.
Umenyiora reported to training camp Saturday afternoon after missing Friday's training camp opener at the team's headquarters in East Rutherford, N.J.
The 29-year-old said during the summer that he was unhappy with the team because general manager Jerry Reese failed to live up to a promise to renegotiate his contact after last season.
Umenyiora started all 16 games last season and led the league with 10 forced fumbles. His 111/2 sacks tied Justin Tuck for the team lead.
Ingram signs with Saints. Moments after signing his rookie contract with the New Orleans Saints, Mark Ingram couldn't wait to put on his jersey. He was permitted to only watch Saturday, but coach Sean Payton indicated he's eager to get Ingram going.
The 2009 Heisman Trophy winner from Alabama says he's been focused on being in the best shape of his life when he reported to camp. He also has a basic knowledge of the Saints' offense after training with teammates during the lockout. Ingram signed two days after 2005 Heisman winner Reggie Bush was traded to Miami.
Texans cut first-round flop. The Houston Texans have cut 2007 first-round pick Amobi Okoye, along with quarterback Dan Orlovsky and receiver David Anderson.
Okoye, a defensive tackle, was 19 when he was drafted 10th overall in 2007, the youngest player ever taken in the first round.
Orlovsky played in only one game in two seasons in Houston and did not complete a pass. He signed a three-year contract with Houston in March 2009, and was Matt Schaub's backup in 2010. Anderson played all five of his seasons in Houston, and caught 11 passes for 117 yards in 2010.
Giant shy away from Burress. Eli Manning would be happy to have Plaxico Burress back in a Giants uniform, but the quarterback isn't going to lobby management to re-sign the Super Bowl hero.
Manning made it clear that it's up to general manager Jerry Reese, coach Tom Coughlin, and the Giants ownership to decide whether to re-sign Burress now that the gifted receiver has finished his nearly two-year prison sentence on gun charges.
"I am going about my business and preparing myself," the Giants quarterback said Saturday on the first day of practice at training camp. "I don't lobby for anybody. If this is the right spot for Plaxico, if the Giants and coach Coughlin are pleased with his attitude after talking to him, I am happy to have him."
Burress, who was released from prison June 6, visited with Coughlin, Reese, and co-owner John Mara on Friday night in an attempt to convince them that he could be a team player.
Coughlin said he had a nice conversation with Burress and was happy they talked on Friday night, but he would not discuss what was said.
Dallas coach hurt in practice. Cowboys receivers coach Jimmy Robinson was accidentally run over by a player and knocked unconscious for about a minute Saturday during one of the first contact drills of training camp.
Robinson, who was able to move his arms and legs, was strapped to a backboard and hospitalized for evaluation.
The accident happened while Cowboys were practicing in pads for the first time, doing punt returns. Robinson was watching from the outside of a sideline when sprinter-turned-receiver Teddy Williams was forced out of bounds by a defender and slammed into Robinson.