Donald will become the highest-paid non-quarterback in the league when he stays with the Rams.
According to sources, the Rams reworked Donald's contract to give him a raise over the last three years of his contract. Donald's contract is now worth 95 million dollars over three years.
The deal includes $65 million guaranteed in the first two years of the contract and is structured to allow Donald to either retire or return for the 2024 season for an additional $30 million guaranteed.
Donald was taking his physical and was expected to sign the contract later in the day.
Donald said on the I Am Athlete show last week that he would be at peace with his career if he didn't get a new deal.
The four-time Defensive Player of the Year sealed the Rams' victory over Cincinnati in the Super Bowl when he pressured the quarterback into throwing the ball away on fourth down.
During the playoffs, Donald had 3.5 more sacks than he had in the regular season.
Donald has 98 sacks over the course of eight seasons. He has been selected to the Pro Bowl in each of his years in the league.