In typical Denver Broncos fashion, the team saved money on Monday night by spending even more of it, shaving about $3.6 million off the 2002 salary cap by reaching agreement with star wide receiver Rod Smith on a new seven-year contract.

	Smith

Essentially the team tore up the final two years of Smith's existing contract and replaced it with a deal worth about $40 million, which includes an $11 million signing bonus. The bonus is the second-largest ever paid by Denver, behind only the $12.6 in upfront money the Broncos gave to quarterback Brian Griese last summer.

The new deal, which makes Smith one of the league's highest paid wide receivers, reduces his salary cap charge for the 2002 season from $6.8 million to about $3.2 million.

"Rod has been a great team player for his whole career and the Broncos rewarded him for that," Smith's agent Tom Mills said Monday. "He's relieved to have this deal done.

"This caps what has been a tough year for him. He achieved great individual honors, but he took a beating doing it. He was pretty banged up at the end of the year. He was taking the brunt of every hit going on out there. It was stressful trying to get through the season in one piece. But knowing this contract is in place is a big load off his mind."

In another move aimed at squeezing under the league's $71.101 million spending limit by Friday, the club completed a restructuring of center Tom Nalen's contract, which seems to be an annual event for the Broncos and the veteran snapper.

Smith, 31, has posted 1,000-yard performances in each of the past five seasons. The seven-year veteran led the NFL in 2001 with 113 catches, a franchise record, and had 1,343 yards and 11 touchdown catches. He played much of the latter part of the season in pain, with injuries to both of his ankles, but was still effective.

The former Missouri Southern standout began his career as an undrafted free agent in 1994 and became a starter in 1997. The contract allows Smith to finish his career in Denver.

"That's what Rod wanted," Mills said. "The Broncos have meant a lot to him and I'd like to think he's meant a lot to them. This is a deal that helps both sides."

For his career, Smith has 470 catches for 6,756 yards and 44 touchdowns.

Pasquarelli is a senior writer for ESPN.com. The Associated Press contributed to this report.