Despite his position as a "nickel" cornerback, Deshea Townsend proved to be worth considerably more than just pocket change as the Pittsburgh Steelers reached a contract agreement to retain the four-year veteran Friday at a cost of more than $1 million annually.

The Steelers won the bidding for the popular unrestricted free-agent cornerback, who was seriously pursued by at least four other teams, with a four-year contract. The $4.2 million includes a $925,000 signing bonus.

Townsend can earn up to an additional $650,000 a year in playing time incentives.

The deal keeps intact the Pittsburgh cornerback trio of Townsend and starters Chad Scott and Dewayne Washington. The team is also negotiating for the return of No. 4 corner Jason Simmons. The Steelers haven't signed a free agent from another team but have yet to lose any of their own veterans on the open market.

Certainly the talented Townsend was one of the most coveted "nickel" corners in the free agent pool and teams came after him hard. Most general managers and personnel directors acknowledge that Townsend rates among the top four or five "nickel" defenders in the league. And in a game where the "nickel" corner is typically on the field more than 50 percent of the snaps, the position has evolved into a critical one.

Townsend, 26, was chosen by the Steelers in the fourth round of the 1998 draft. The former Alabama standout has appeared in 60 games and started five during his career. He has posted 91 tackles, 5 ½ sacks, two interceptions and 30 passes defensed. His passes defensed total ranks sixth among "nickel" corners over the past four seasons.