Terrell Davis could be back in a Denver Broncos uniform in 2003.

The former Pro Bowl running back has agreed in principle on a contract and hoped to finalize the restructured deal Wednesday or possibly Thursday to keep him on the roster until at least June, ESPN.com's John Clayton is reporting.

Although Davis chose not to play last season because of his injured knees, he never officially informed the league that he was retiring.

Davis, who was scheduled to make $5.7 million, took his base salary to the minimum of $655,000 plus incentives. Davis talked about retirement last season but he has been rehabbing his knee and plans to work toward playing next year.

By taking down his salary, Davis buys more time for a possible comeback. For the Broncos, it was a cap savings of $5.045 million. Including the seven players who were cut Tuesday, the Broncos saved in excess of $17 million of cap room over the past two days.

Davis, a sixth-round draft pick in 1995, began his NFL career with four brilliant seasons, rushing for 6,413 yards and playing on two Super Bowl championship teams.

In 1998, before the Broncos beat Atlanta 34-19 for their second straight Super Bowl title, Davis joined O.J. Simpson, Eric Dickerson and Barry Sanders as the only players to rush for 2,000 yards when he gained 2,008 and won the MVP award.

He has played in only 17 games since because of knee injuries.