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Tony Gonzalez signs extension with Falcons

Atlanta Falcons v Carolina Panthers

CHARLOTTE, NC - DECEMBER 11: Tony Gonzalez #88 of the Atlanta Falcons celebrates during their game against the Carolina Panthers at Bank of America Stadium on December 11, 2011 in Charlotte, North Carolina. (Photo by Streeter Lecka/Getty Images)

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Tony Gonzalez will not be retiring just yet.

Jay Glazer of FOX reports that the Falcons tight end finalized a one-year, $7 million extension with Atlanta on Saturday. He’ll be back for his 16th NFL season.

It was believed Gonzo could retire, but he’s clearly still able to play at a high level. He has 79 catches for 867 yards and seven touchdowns this year, which is better than his production the previous two years.

UPDATE 1:23 p.m. ET: The Falcons confirmed the one-year deal.