Sources: The Texans spent the last three offseasons in the Stefon Diggs deal

As part of their blockbuster trade to acquire wide receiver Stefon Diggs, the Houston Texans have cleared the final three years of his contract, giving him the ability to become a free agent after this season, league sources told ESPN's Adam Schefter.

The Texans also took Diggs $3.5 million guaranteed next season and rolled over to this offseason, giving him a raise and assuring him $22.52 million in guaranteed money in 2024.

The Texans acquired Diggs on Wednesday, sending the 2025 second-round pick (via the Minnesota Vikings) to Buffalo. Houston also received two draft picks: a 2024 sixth-round pick (No. 189 overall) and a 2025 fifth-round pick. The Texans acquired a 2025 second-round pick from the Vikings when they traded their 2024 first-round pick to Minnesota last month.

With the contract adjustment, the Texans now expect to get the best version of Stefon Diggs, who will be in a position to negotiate another long-term contract next season.

Diggs, a three-time captain with the Bills, signed a four-year, $104 million contract extension with the team in April 2022. The Bills will take a dead money charge of $31.096 million next season after trading Diggs, according to the roster management system. That would be the highest known dead money fee ever for a wide receiver in any season, according to ESPN Stats & Information research.

Diggs' production declined after the first six games of the 2023 season. He did not have another 100-yard receiving game the rest of the season and only caught three more touchdowns. Over the Bills' final seven games last season, including the playoffs, Diggs averaged 41.0 yards per game and no touchdowns. It's the only time in Diggs' career that he's gone seven straight games without a touchdown.

However, Diggs set a variety of team and league records during his time with the team, including being one of four players in NFL history to record four consecutive seasons with 100+ receptions (Antonio Brown, Davante Adams, Marvin Harrison They are the others.)

Diggs is one of two receivers to be selected to the Pro Bowl in each of the past four seasons, along with Tyreek Hill.

ESPN's Alaina Getzenberg contributed to this report.