Under the new deal, Brady changed the $24 million in "skill" guarantee to only "injury" guarantee, meaning that Brady now would get the guaranteed money only if he was injured.
Brady also now can be released by the Patriots without any liability, but he then would become an unrestricted free agent, free to command the type of guaranteed money he has agreed to surrender.
Brady will receive a $1 million bump in each of the three remaining years of the deal. His base salaries will now be $8 million in 2016, $9 million in 2016 and $10 million in 2018.
The move frees up cash for the Patriots to use on other players. New England needs the cash to help re-sign some of its own free agents, including cornerback Darrelle Revis, safety Devin McCourty, tackle Nate Solder and running back Shane Vereen.
ESPN Patriots reporter Mike Reiss contributed to this report.
Brady Restructures Deal, Frees $24M For Patriots
Eric Allen discusses Patriots QB Tom Brady restructuring his contract to give New England $24 million more in cash to spend this offseason.