There's a new highest-paid safety in the NFL. The Los Angeles Chargers have agreed to a record-setting contract extension with Derwin James, according to multiple reports.

James signed a four-year contract worth $76.5 million, NFL.com's Ian Rapoport reports. The deal reportedly includes $42 million in guaranteed money and $29 million in the first year of the contract, both of which are all-time highs for a safety.

James' contract has an average annual value of $19.1 million. The 26-year-old surpasses Pittsburgh Steelers safety Minkah Fitzpatrick as the highest-paid player at the position. Fitzpatrick makes $18.4 million per year on a contract worth $73.6 million.

Before inking his extension, James had been "holding in." The safety showed up to Chargers' training camp but wasn't practicing with the team as he sought a new contract. James was set to make $9 million for the 2022 season in the final year of his rookie contract.

Since being selected by the Chargers with the No. 17 overall pick in the 2018 NFL Draft, James has been one of the league's best overall players when healthy. James was a First-Team All-Pro selection in both 2018 and 2021.

In 36 career games, James has five interceptions, 5.5 sacks, 19 passes defensed and 257 tackles.

"I don't look at Derwin as a safety. I look at Derwin as an impact player. I think if you were just looking at him as a safety, that wouldn't be doing Derwin justice," Chargers head coach Brandon Staley said Tuesday, via The Athletic's Daniel Popper.

"For me, I look at him as a defensive back. When I see him, I'm like, that's a defensive back, because he can play anywhere. He can play either safety spot. He can play corner. He can play Star or Money. He can rush the quarterback and make an impact as a blitzer. He can make an impact in man-to-man coverage. And then he can make an impact in zone defense, whether he's playing low or high. And he's our signal-caller and the heartbeat of our defense."

The issue with James has been an inability to stay on the field. James played five games in 2019 because of a foot injury and missed the entirety of the 2020 season with a torn meniscus.

James played 15 games last season and was part of Los Angeles' No. 12 ranked pass defense. The Chargers missed the playoffs for the third straight season.

Expectations are high for James and the Chargers in 2022. With star quarterback Justin Herbert entering his third season, Los Angeles is considered to be a legitimate Super Bowl contender.

Derwin James Chargers
Derwin James of the Los Angeles Chargers celebrates an incompletion by the Las Vegas Raiders during the third quarter at Allegiant Stadium on January 09, 2022 in Las Vegas, Nevada. Chris Unger/Getty Images